You are here: Home - Credit Cards & Loans - News -

Concern as credit card and loan debt grows to 11-year high

Written by: Paloma Kubiak
Credit card and loan debt grew by £1.9bn in November, up 10.8% on a year ago, official Bank of England statistics show.

The Bank of England’s money and credit report revealed consumer debt in the month before Christmas was at its highest level since October 2005.

November’s figure it’s much larger than the average monthly increase of £1.6bn over the previous six months.

Within consumer credit, credit card lending increased by £0.6bn in November, which is broadly in line with the average over the previous six months.

Other loans and advances increased by £1.4bn, compared with an average monthly increase of £1.1bn over the previous six months.

This brings the total amount of outstanding consumer debt, which includes credit card, other loans and advances, but excluding mortgage debt, to £192.2bn.

Joanna Elson OBE, chief executive of the Money Advice Trust, the charity that runs National Debtline, said with consumer credit continuing to soar at a time of UK economic uncertainty, we should all be concerned.

“Most people are currently able to handle this extra borrowing, but if the economy does indeed suffer in the years ahead, these extra debts could become even more difficult to repay.

“We would urge households to review their financial position carefully before taking on any new borrowing, and consider how they would cope with the repayments in the event their circumstances take a turn for the worse.”

Elson said that as the figures only take into account some of households’ pre-Christmas spending, the numbers could be even more stark.

“Our research shows that one in three Britons put Christmas on credit – and we are already seeing a surge in people contacting National Debtline for advice as a result.

“Anyone who is struggling to cope should seek free advice from a charity-run service such as National Debtline as quickly as possible.”

If you’re struggling, visit the National Debtline website or call 0808 808 4000.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Caller display fees could be banned under watchdog proposals

Phone companies could be banned from charging customers for using caller display services under proposals to combat nuisance calls announced...