Rising consumer borrowing could spell problems for people’s finance futures

2nd March 2017

As the Bank of England’s latest money and credit statistics show an increase in consumer borrowing, Citizens Advice says right now more people are seeking help for debt problems from essential household bills. The Bank of England’s figures for January 2017 show consumer credit grew by 10.3% in the year to January to £194 billion.

Citizens Advice Chief Executive, Gillian Guy, said: “Consumer borrowing continues to rise at a time when people are already struggling with debts from essential household bills. In the last 12 months we’ve helped 200,000 people with household debts such as rent, fuel and council tax, in comparison to 150,000 people with consumer credit debts such as credit cards and loans.”

“Turning to credit can spell problems further down the line if an unexpected event – such as the loss of a job – makes it difficult to keep up with repayments. But right now, the struggle to keep on top of household bills is putting more people at risk of financial hardship. For people struggling with household debts, it’s really important there is free, independent help available. Citizens Advice can help anyone worried about their finances.”

The Bank of England’s Money and Credit statistics can be found here.