Consumer debt in the UK is down 10%. The bad news? Utility bill arrears are up

‘Rather than borrowing on credit cards, those on lower incomes have been falling behind on priority bills, such as rent, utilities or council tax.’ Photograph: Gary Roebuck/Alamy

It’s important to worry about the right things. Interest rates are up, sparking worries about our debts – in my case, the mortgage. Consumer debt (credit cards, overdrafts and personal loans) is surging, we’re told. But the truth is, consumer debt levels are down. New Resolution Foundation research shows them at their lowest since at least 1999, down from 23% of household disposable incomes in the mid-2000s to 13% today.

Since the start of the pandemic, there have been two phases. During lockdowns people couldn’t spend, paying down debt to the tune of £26bn between December 2019 and March 2021. More recently, debt has been increasing again but not as fast as incomes. Lenders have been tightening up access to loans, and higher inflation can also help those of us with debts partially “inflate” them away.