Rise in borrowing a sign that pressure is beginning to tell for many households
The Bank of England has today published its latest Money and Credit figures showing consumer credit growth rose 6.5 percent in June 2022. The annual growth rate of credit card borrowing was 12.5 percent with outstanding balances for consumer credit now standing at £203.9 billion.
Jane Tully, director of external affairs and partnerships at the Money Advice Trust, the charity that runs National Debtline and Business Debtline, said: “Household finances are under more pressure than ever – today’s borrowing figures are a warning sign that, for some, the pressure is already beginning to tell.
“Whilst many households are so far able to absorb the impact of rising prices, others are facing impossible choices trying to meet everyday costs. And with a further hike in energy prices around the corner, our concern is that more people will have to turn to credit to cover basic needs.
“Government support so far has been welcome, but more support is needed for those on the lowest incomes, including significantly raising benefits.”