Risky credit card debt is set to soar as the cost of living crisis piles further pressure on Britons.
A report has found that credit card borrowing will increase by £9billion by September, boosting the UK’s total bill to £68.9billion.
Risk: Soaring household bills and rampant inflation forced UK consumers to put £1.5billion more on credit cards in February than on a year before
Soaring household bills and rampant inflation forced UK consumers to put £1.5billion more on credit cards in February than on a year before, according to the Bank of England.
Neil Kadagathur, chief executive of the lender Creditspring, which commissioned the study, said: ‘Credit cards are going to provide a lifeline for borrowers over the next few months.
‘However, with millions reliant on borrowing to survive, credit cards with high repayment terms and large risk of debt spirals are a high-risk option that could lead to increased debt for many households.’
With UK inflation running at a 30-year high of 7 per cent, one in six adults said they would need to borrow to survive over the next six months.
