Continued rise in borrowing a sign of growing challenges households face
The Money Advice Trust responds to the latest Bank of England Money and Credit figures
Posted September 30, 2022
The Bank of England has today published its latest Money and Credit figures showing consumer credit continued to grow at 7 percent in August 2022. The annual growth rate of credit card borrowing was 12.9 percent with outstanding balances for consumer credit now standing at £205.1 billion.
In research published recently by the Money Advice Trust, the charity found that:
- 15.3 million people (29 percent) say they have had to use credit to pay for essentials – an increase of 2.1 million since March 2022.
- An estimated 10.9 million (21 percent) of UK adults are already behind on one or more household bill, an increase of 3 million people since March 2022.
- 5.6 million (10 percent) have had to borrow money from family or friends.
Joanna Elson CBE, chief executive of the Money Advice Trust, the charity that runs National Debtline and Business Debtline, said:
“The continued high level of borrowing is a clear sign of the growing challenges many households are facing. Whilst the government’s capping of energy prices provides relief from future energy increases, millions of households are already struggling with rising costs across the board.
“Our findings show that a fifth of UK adults are already behind on one or more bill and an increasing number are having to turn to credit to cover their essentials.
“For those on the lowest income, who are feeling the impact of rising costs most severely, the choices are even more stark. The government urgently needs to raise benefits to support those people who are being hit the hardest.
“I would encourage anyone worried about their finances to seek free debt advice from a service like National Debtline as soon as possible.”
National Debtline provides free, independent debt advice at www.nationaldebtline.org.