Households are falling into debt, as outstanding credit card balances soar by 9.5 pc in a year.
Official figures from banking group UK Finance show that uncleared 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 afford to pay off in one go.
Debt burden: Official figures from banking group UK Finance show that uncleared credit card balances rose by more than £4.1bn in the year to April
Sarah Coles, of Hargreaves Lansdown, says the ‘significant’ pace at which people are amassing debt is because they have used up most of their savings. She says: ‘What’s worrying is why we’re borrowing.
According to our Savings & Resilience Barometer, 99 per cent of people are borrowing for immediate consumption, rather than to grow their wealth or amass assets.’
analysts expect unsecured credit to rise sharply over the next 12 months.
