British households repaid record amounts of debt racked up on credit cards and personal loans in April as consumers stayed away from the high street during lockdown.
Figures from the Bank of England show £7.4bn of consumer credit was repaid during the first full month of strict restrictions on business and social life, the largest net repayment since records began in 1993.
Reflecting a record plunge in retail spending in April as people stayed indoors, the Bank said £5bn in credit card debt was paid off in April, more than double the previous month and far more than the typical £300m paid back monthly by consumers.
However, outstanding debts on credit cards remain about £64bn. Experts also warned that while many households managed to repay their debts during lockdown, the hit to workers’ wages and rising job losses at the onset of the deepest recession in living memory would force others deep into the red.
Laura Suter, a personal finance analyst at the investment platform…