StepChange Debt Charity comments on latest Bank of England consumer credit data and FCA creditworthiness rules. Peter Tutton, Head of Policy at StepChange Debt Charity said: “Whilst the growth in consumer credit recently stabilised, households are still at risk of being tipped into severe problem debt. We estimated 9 million people are already using credit just to make ends meet, as the recent ONS report showed the poorest 10% of households spent two-and-a-half times their disposable income. Therefore helping the households living on a financial knife must be a priority for public policy.
“With credit card borrowing growing fastest and the FCA’s proposals for toughening affordability assessments released today1, we are looking for a clear statement from the regulator that credit markets, and credit cards in particular, must grow in a sustainable way and lending practices focus on preventing people from falling into persistent debt.”