Borrowing hits record level

Consumers borrowed a record amount on their credit cards during February, figures showed today.

The Bank of England reported that individuals borrowed ?9.21bn on their plastic in February, the highest figure since records began in 1993.

However, strong repayments led to net lending on credit cards rising by just ?588m, compared to jumps of ?797m and ?735m in the two months leading up to Christmas.

Overall consumer credit, which includes credit cards, loans and hire purchase agreements but not mortgage lending, grew by ?1.85bn or 1.3% to a total outstanding debt of ?142.82bn in February.

During the month growth in unsecured lending to individuals was 15% higher than it had been in February 2001. Total advances, which exclude repayments, reached ?15.6bn, compared to an average of ?15.3bn in the three months leading up to January.