Credit card debt lowered by £281m

The average British consumer is becoming more savvy when it comes to the debt problems which can surround credit card repayments.

New figures show the amount of people getting cash advances using their credit cards declined by a factor of 18 per cent in 2010 until the end of October.

The British Bankers’ Association research also found the amount of cash people withdrew also fell by 21 per cent, to £136 on average.

Best of all, fewer Brits may need debt help as it’s now apparent more people repay larger amounts on consistent basis compared to what they spend each month.

The BBA says consumers collectively lowered their credit card debt by £281 million in the month of October.

Debt expert Kevin Still from Atlantic Financial Management says "Using credit cards to withdraw cash should always be carefully considered, as historically it was the most expensive and slowest form of debt to be repaid.

Many card issuers limit the amount of cash you can withdraw relative to your outstanding balance and credit limit.

For those that are not paying down their credit card debts and only making minimum payments, it can take decades to clear debts."

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