Rise in borrowing a further sign of relentless pressure on household finances
The Bank of England has today published its latest Money and Credit figures showing consumer credit growth rose 6.9 percent in July 2022. The annual growth rate of credit card borrowing was 13 percent with outstanding balances for consumer credit now standing at £204.4 billion.
Joanna Elson CBE, chief executive of the Money Advice Trust, the charity that runs National Debtline and Business Debtline, said: “Today’s figures, showing the continuing rise in consumer borrowing, are a further sign of the relentless pressure that household finances are under.
“Confirmation on Friday of the huge hike in energy prices will have only added to the worries of millions of people concerned about how they will make ends meet in the coming months. For many households, however, options are already running out, with more turning to credit to cover essential needs. And for those who are already in difficulty, the situation is only set to get worse without intervention.
“Government support is urgently needed now for those most affected. This should include targeted help for those on the lowest incomes through significantly raising benefits.”