New borrowing on credit cards, loans and overdrafts has outstripped the amount being paid back by UK consumers for the first time since June.

Consumer credit rose £52m in December, driven by credit card borrowing, Bank of England figures showed.

The number of mortgages approved for house purchases dipped slightly compared with November, to 59,023. This was still higher than the average of the past six months when the housing and mortgage markets have picked up.

Spending on plastic

Steve Jackson of BeatMyDebt.com said that the increase did not surprise him. "The have now, pay later culture is a deep rooted British mindset. With constant talk of house prise rises, people will start to feel better off again which will lead to an increase in spending on credit" he said.

The trend during the downturn has been for consumers to pay off debts, often instead of saving when interest rates are so low.

For five consecutive months, repayments outstripped new consumer credit. However, in December, the trend reversed, the Bank of England's figures show.

This was primarily the result of borrowing on credit cards which rose by £195m. Demand for personal loans and overdrafts remained low, with repayments outstripping new borrowing by £143m.

Total net lending to individuals rose by £1.2bn in December, double the average of the previous six months. The vast majority of borrowing is in the form of mortgages.