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Unsecured debt rose £200m in May

This May, the amount of unsecured debt being carried by individuals rose by £200m, the Bank of England tells us.

Every month, it publishes its `Lending to Individuals` statistics, showing us how much debt people took on or repaid in the previous month.

It breaks those figures down into debt that`s secured on dwellings and `consumer credit` (unsecured debt, such as credit card debt and unsecured loans).

The latest figures, published two days ago, show that the overall amount of debt actually rose by £1.3bn in May, as people borrowed more than they repaid.

Of that increase, the majority - £1.1bn - was secured against property.

The other £200m was unsecured debt. A spokesperson for the IVA Advisory Centre commented: "It`s worth noting that this is quite a decrease on the figures over the last few months. In February, consumers took on an additional £800m in unsecured debt - and in both March and April, £500m.

"You hear a lot about people`s problem obtaining credit these days, but `supply` (availability) is only part of the story - there`s also `demand` (how much people are actually looking for credit).

"These days, many people are quite simply determined to reduce their debt levels: paying back what they owe and trying not to borrow more. This is a sensible approach to debt - especially at a time like this, with all the economic uncertainty we`re seeing."