Debt on UK credit cards is growing at the quickest rate recorded in the past 12 years, according to the figures published by UK Finance.

Credit cards are being used more frequently for smaller, contactless purchases which in part explains the debt built up over shorter periods.

However, figures published by UK Finance show that the annual growth rate in outstanding credit card debt of 8.3% in February was the highest level the UK has seen in 12 years.

New rules are being introduced to protect credit card holders soon. The first rule being implemented will be introduced in September and will begin with prompts to encourage people to pay back the debt faster, with more in-depth guidance being provided after three years, whilst interest and charges being waived is also a possibility.

The 8.3% figure illustrates that credit card debt is growing much faster than other types of borrowing, such as loans and overdrafts, with 220 million credit card transactions processed in February, 3.3% more compared to the same month last year.

The number of credit cards issued in February also increased by 6.3%.

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