Credit card borrowing in the UK in April rose at the fastest annual rate in nearly two decades, according to data released by the Bank of England on Tuesday.
The regulator revealed that spending on cards was 11.6% higher than last April, marking the biggest increase since November 2005, while overall consumer credit rose by 5.7% year-on-year, the fastest growth since February 2020. The housing market meanwhile has slowed, with people taking up fewer mortgages, and approvals for house purchases decreasing.
“It shows the economic storm clouds are getting darker by the day. People can take out credit and loans if they are confident, but in this case it’s almost certainly because they are seeking extra cash to cover their bills and put food on their tables,” Andrew Montlake, managing director of the UK-wide mortgage broker, Coreco, told the Guardian.