StepChange comments on August’s Bank of England data

Today the Bank of England has released its latest Money and Credit release for August, showing that net consumer borrowing increased for the second month in a row, albeit at a lower rate than in July.

Peter Tutton, Head of Policy at StepChange Debt Charity, said: “The Bank of England data showing that people continued to borrow more than they repaid on consumer credit in August is just the latest indicator that not everyone is experiencing the same effects in these difficult days. Our research has clearly shown that the hardest-pressed households are turning to additional borrowing to make ends meet, even as the cost of borrowing rises, with the average rate charged on overdrafts in particular now at 19% compared with 10.32% in March before new pricing structures took effect. The Covid landscape reveals ever more clearly the spiralling costs facing those who have to borrow to make ends meet compared with those who don’t.”