New figures from the Bank of England show that consumers turned to credit again in January, although the rate at which debt is growing is slowing down.

Personal debt, excluding mortgages, grew by £1.5bn over the month, of which £0.7bn was borrowed on credit cards, compared to a credit card debt rise of just £0.2bn in December.

While increasing debt levels remain a cause for concern for many, the annual growth rate is slowing, with outstanding debt growing by 8.7% in the 12 months to January compared with 9.4% for December.

While much of the rise can be put down to the traditional New Year financial hangover, the relatively small jump in indebtedness levels is being seen by many analysts as further evidence that consumers are turning away from borrowing and towards more careful financial management.

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