StepChange Debt Charity comments on latest Bank of England consumer lending figures

Responding to the latest Bank of England Money and Credit statistical release showing that the annual growth rate of consumer credit slowed in July, to 8.5%, Peter Tutton, Head of Policy at StepChange Debt Charity said: “The slowing rate of credit growth in July perhaps reflects two themes. Consumer confidence has been fragile over the summer months and this may be reflected in less demand for credit, for bigger ticket items in particular – and with continuing economic uncertainty ahead, this lack of confidence may continue. Over the same period lending criteria have tightened, which we hope is a reflection of an increasing market focus on sustainable lending, following the FCA’s work around creditworthiness and affordability.

“This is all against a background of 3.4.million people struggling with serious problem debt and 1.4 million people having to use high cost credit for household expenses.”