BoE credit card borrowing – set to spike ahead of energy bill hike as borrowing becomes more expensive

Although credit card borrowing actually dipped slightly in July, it has been increasing over the last 12 months at the fastest rate since 2005 – plus it’s likely that we’ll see a spike in the next couple of months as summer holiday spending kicks in and the upcoming energy bill hike puts even more pressure on household bills. Rising interest rates are also being passed onto borrowers meaning borrowing is more expensive than at any point since 2008 – at the precise moment when millions are reliant on borrowing to survive. It’s vital that the credit industry steps up to support borrowers at this crucial moment.”

Our research also shows that the UK’s credit card bill is set to jump by £310m after the most recent Bank of England interest rate rise.

Neil Kadagathur, Co-Founder and CEO of Creditspring