Credit card debt falls for the first time in a decade

Credit card debt has fallen for the first time since May 1994, the British Bankers' Association (BBA) said.

During April 2005, cardholders paid £40m more off their credit cards than they borrowed.

David Dooks, of the British Bankers' Association, said: "This is another indication that the consumer is being more cautious in the light of lower household disposable income. "The household belt is tightening."

Figures also reveal that people are saving more with £3.4 billion stashed away for a rainy day, compared to earlier figures of £2.3 billion.

However, the BBA remarked the fall in card debt could be temporary, adding that loan and mortgage borrowing had risen.

The fall in credit card debt comes against a backdrop of retailers such as Next and Boots reporting lower sales. The small drop in credit card debt could be seen as further indication of a slowdown in High Street spending.