CONSUMER credit growth hit a five-year low during May, Bank of England data shows.
Figures from the Bank show consumer credit borrowing grew by 5.6 per cent in May 2019, the weakest rate this year and the slowest since April 2014.
It is also well below the peak of 10.9 per cent in November 2016.
The value of loans declined by £0.5bn over the month, while credit card lending increased by £0.3bn.
Stuart Wilson, corporate marketing director at equity release provider more 2 life, suggested over-55s were turning to unsecured borrowing to boost their income.
“The figures show that credit cards and other forms of unsecured borrowing are continuing to be used by consumers to juggle their finances and meet their ongoing commitments,” he said.
“Our own research supports this, revealing that one group in particular is turning towards unsecured borrowing to help boost their income, with 29 per cent of over-55s saying they’ve taken on debt to help cover their day-to-day expenses.”
It was also a poor month for mortgage borrowers, with approvals for house purchase, buy-to-let and remortgaging declining by 1.9 per cent to 126,823.
There was better news for small businesses though, as the value of lending increased by £0.2bn.