credit card debt has fallen for the first time in more than a decade.

Last month, outstanding plastic debt fell by £40m as people repaid more than they borrowed for the first time since May 1994.

At the same time, the amount they saved remained strong for the second month in succession at £3.4bn, compared with a recent average of £2.3bn, according to the British Bankers' Association (BBA).

David Dooks, BBA director of statistics, said: "This is another indication that the consumer is being more cautious in the light of lower household disposable income. The household belt is tightening."

But he added that the figure, which is seasonally adjusted, may have been distorted by Easter falling in March this year, while slightly higher high street spending during April would not show up on credit card bills until this month.

The BBA also reported subdued growth in loans and overdrafts, while mortgage lending was weaker as the housing market continued to slow.

The group said outstanding mortgage debt rose by £4.03bn last month, after redemptions and repayments had been stripped out - £500m less than the average for the previous six months.

The Council of Mortgage Lenders reported a slight rise in total mortgage lending last month, increased by two per cent to £21.5bn.

The group said that was 14 per cent lower than it had been during the same month of the previous year.