Consumer credit sees fastest growth in 10 years

Personal loans and overdrafts fuelled increase in consumer borrowing in October, data from lenders reveals

Borrowing on credit cards and loans grew at its fastest rate in almost a decade in October, according to figures from Britain's high street banks, as lenders competed to offer the best deals.

The British Bankers' Association (BBA) said consumer credit was up by 7% year on year, the fast annual rate of growth since November 2006. In total, net unsecured borrowing increased by 633m during the month, up from 465m in September.