‘No room for complacency’ as growth of credit continues
The Bank of England has published its latest monthly Money and Credit report this week (November 29).
The report found consumer credit has grown nearly 10 percent in the 12 months to October 2017 and outstanding balances for consumer credit now stand at over £205bn.
Joanna Elson OBE, chief executive of the Money Advice Trust, said: “With rising living costs, low wage growth and a rise in interest rates contributing to a squeeze on many household’s budgets, there is no room for complacency. A rise of 9.6 percent in consumer credit growth when wage growth is at 2.2 percent is clearly a worry.
“Many families are already struggling to make ends meet, and with Christmas fast approaching, we encourage people to exercise caution before taking on additional borrowing and to consider how they would be able to cope with repayments in the event of a shock to their income.”