The Bank of England’s latest money and credit statistics show consumer borrowing increasing by 10.5% in the year to February to £196 billion.
As the Bank of England and the Financial Conduct Authority launch reviews into lending practices, Citizens Advice says more must be done to make sure lenders across all consumer credit markets behave responsibly towards their customers.
Gillian Guy, chief executive of Citizens Advice, said: “While households are struggling to meet everyday costs like rent and bills, the amount that people are borrowing on credit cards is also continuing to rise.
“In the last year Citizens Advice has helped 200,000 people with household debts and 150,000 people with consumer credit debts, including personal loans and overdrafts.
“Turning to credit without a plan about how to pay it back can lead to spiralling debt, so it’s good news that the Bank of England and the FCA is looking into how robustly lenders are checking whether people can afford to repay what they borrow.
“Anyone who is concerned about their finances should contact Citizens Advice for free debt advice.”
