Credit cards boom gloom

Credit card borrowing rises at fastest rate in more than a decade sparking Bank of England fears of a new debt crisis

Bank of England shares concerns British households are living beyond their means as spending on plastic grows 9.3 per cent

CREDIT card borrowing has risen at its fastest rate in more than a decade and raised fears of a new debt crisis.

Spending on plastic grew 9.3 per cent in the year to February, up from 8.6 per cent the month before.

Alamy
Growth in household debt fuels fears people are living beyond their means

That is the fastest growth rate since February 2006 and comes amid fears households are living above their means.

Some £600million was piled on credit cards last month, with households owing £67.3billion, The Bank of England said.

The rise pushed up the overall flow of consumer credit to £1.44billion in February. City analysts expected £1.3billion.

The Bank’s financial policy committee fears a repeat of the debt bubble which led to the 2008 financial crash.

Alamy
Debt has risen at fastest rate in over a decade

MOST READ IN MONEY

RETAIL PAIN
Poundland shutting another three branches with 200 more at risk – see full list
PRETTY PENNY
Minor detail to spot on ultra-rare 1p coin worth £130,000 at auction

It said earlier in the week household debt is “high by historical levels”.

Peter Tutton, head of policy at StepChange Debt Charity, said: “Consumer credit continues to rise rapidly, adding to levels of UK household indebtedness that are already high by historical standards.

“With the Bank of England highlighting the need for lending standards to be monitored closely, we urgently need action to prevent more households falling into unmanageable debt.

 

Alamy
Peter Tutton from charity Step Change’ calls for ‘responsible lending standards’

“February saw the highest increase in credit card debt in 11 years and the Financial Conduct Authority (FCA) has already raised concerns over levels of persistent credit card debt.”

He called for the FCA to impose “responsible lending standards”.

Mr Tutton suggested it could include “banning unsolicited credit limit increases and compelling lenders to intervene early when people fall into difficulty”.

Exit mobile version
LOGO_machibet_200x200

Machibet

star star star star star 4.9/

6,000.000+downloads/Free/Bengali/Version2.3.4

777 BDT IPL 2025 Sports First Deposit Bonus

  • 5,000 BDT Daily Reload Bonus
  • Boost Your First Deposit with a 300 BDT Bonus
  • 100% First Deposit Refund Bonus up to 5,000BDT
bKash bank OK Wallet upay
PLAY NOW
Free Bonus
Download For
android