Unsecured credit shows first rise in six months

The level of unsecured borrowing in the UK saw its first rise in six months during December 2009.

Bank of England figures on lending showed that there was a net rise of £0.1 billion in December, compared with a £0.4 billion reduction in November.

It was the first increase since June 2009 and the primary reason was a rise in credit card spending before Christmas, with a £0.2 billion hike in this, compared to a £0.1 billion fall in other unsecured borrowing such as loans.

Those faced with debt management problems may find that if their credit cards are the one source of unsecured borrowing they are seeking, finding a better deal on these could be the best way forward financially.

Last week, a survey from Co-operative Bank Savings indicated that women are likely to rein in their spending substantially this year.

It found that 60 per cent plan to spend less money on clothes in 2010.

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