Lenders paying out more money

New figures published by the Bank of England show lending is going up.

In November personal loans, credit cards and overdrafts rose by £1.1 billion, compared to £0.5 billion the previous month.

But people are also concentrating more on trying to pay debts off, with the total amount of outstanding credit actually falling.

Separate research by the Building Societies Association suggests many people are using their savings to pay down debt.

Its customers took £0.8 billion out of their accounts in November.

Kevin Still of Atlantic says “Debt management seems to be a priority.

"The period after the New Year is traditionally when debt balances and arrears levels rise and then need to be paid down over the next few quarters.

"Those without savings seem to be swapping balances or using credit cards to meet household costs."

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