Borrowers repaid £735m of unsecured debts in April – a 25% year-on-year jump, while the number of transactions to debt repayment increased by 14%, data from Nationwide shows. 

Housing continues to account for the biggest rises with renters seeing a 33% increase, while mortgage repayments increased 18%.   

Many consumers have been using credit to help them deal with rising costs, the survey says. 

On average those with a credit card are repaying £391 per month, while repayments to car finance are £267 and personal loans £195.  

But it adds that with “inflationary pressures easing, some may find themselves in a better position to further reduce outstanding debts”. 

Nationwide’s payments strategy director Mark Nalder says: “Many households have turned to credit as a way of dealing with rising prices.  

“While some are using it to spread the cost of luxury items, such as holidays, others are relying on credit to help pay essential bills. However, a 25% rise in credit repayments should be looked at in the round.  

“As much as some people will be relying more on their credit cards and loans at this time, a notable fall in essential costs such as energy bills and supermarket spend means others will be using the opportunity to repay more debt while they can.” 

Nationwide’s April Spending Report is based on debit and credit card and direct debit transactions made by Nationwide customers between 1 and 30 April.