Many in the UK appear to be turning to credit cards to make ends meet during the cost-of-living crisis. The amount lumped onto credit cards jumped in June to its fastest annual rate in 17 years.
The Guardian reports credit card borrowing rose by £740 million month on month, 13% higher than the year before. Bank of England figures showed it was the biggest year-on-year rise since October 2005.
A spike in inflation to 10.1% in July and imminent energy price rises suggest the tendency to turn to a credit card will only become more prevalent in the coming months. Paul Heywood, chief data and analytics officer at credit scoring agency Equifax UK, said: “The most vulnerable have run out of quick fixes, which is why we continue to see considerable growth in demand for credit.”
