Households falling into debt, as outstanding credit card balances soar by 9.5% in a year
Households are getting into debt, while outstanding credit card balances are up 9.5% in a year
- The use of unsecured loans is expected to increase over the next 12 months
- Consumers use credit cards to make ends meet amid rising costs
Households are getting into debt, as outstanding credit card balances have increased by 9.5 pc in one year. to rise.
Official figures from banking group UK Finance show that unsettled credit card balances rose by more than £4.1 billion in the year to April.
Savers have been forced to use credit to make ends meet as prices and bills rise. But many have borrowed more than they can pay off in one go.
Debt burden: Official figures from banking group UK Finance show unsettled credit card balances rose by more than £4.1bn in the year to April
Sarah Coles, from Hargreaves Lansdown, says the ‘considerable’ rate at which people are building up debt is because they have used up most of their savings. She says, “What’s troubling is why we’re borrowing.
According to our Savings & Resilience Barometer, 99 percent of people borrow for immediate consumption, rather than to grow wealth or accumulate assets.’
Analysts expect unsecured credit to rise sharply over the next 12 months.
lucy.evans@dailymail.co.uk
