High costs continuing to hit households hard as borrowing levels rise again
National Debtline responds to latest Bank of England Money and Credit figures.
Posted February 29, 2024
Today’s Bank of England Money and Credit figures show consumer credit growth rose to 8.9 percent in January 2024, with outstanding balances for consumer credit now standing at £1.9bn billion.
The latest figures come as findings from the Resolution Foundation reveal an increase in the number of households falling behind on their essential household bills, including energy.
Findings from National Debtline show more than one in three callers to its service said they regularly use credit to pay for essential household bills.
The charity, that can help people in financial difficulty apply for Breathing Space, the Government’s Debt Respite Scheme, is urging anyone worried about their finances to seek free debt advice.
David Cheadle, acting chief executive at National Debtline, said:
“The rise in consumer credit borrowing is another worrying indicator of the pressure millions of households are under as high costs, and winter energy bills, continue to bite.
“At National Debtline our advisers are hearing daily from people who are barely coping trying to meet their essential costs, including for food, housing and energy. Many are turning to credit to plug the gaps in their finances which risks problems down the line if repayments aren’t affordable.
“Our advice to anyone who is struggling is to seek help from a free debt advice provider like National Debtline as soon as possible – we’re here to help and can talk you through your options.”
