Today’s Bank of England Money and Credit figures show consumer credit growth rose to 7.6 percent in August 2023 with outstanding balances for consumer credit now standing at £217 billion.

Findings from National Debtline show that 2 in 5 (41 percent) of people who contact its advisers have incomes that are too low to cover their essential costs.

David Cheadle, acting chief executive of the Money Advice Trust, the charity that runs National Debtline said:

“Consumer credit borrowing is rising at a time when high costs continue to hit household budgets hard.

“At National Debtline we are hearing from people whose incomes are not able to keep up with the cost of essentials, with many turning to credit to make up the shortfall.

“The risk is that households using credit to plug gaps in their finances will face further difficulty down the line as debts mount.

“It’s vital that all creditors ensure customers experiencing difficulty are supported, including offering forbearance and affordable repayment options and signposting to debt advice.

“I would encourage anyone worried about their finances to contact a free debt advice service like National Debtline as soon as possible.”

National Debtline provides free, independent, expert advice. Contact us on 0808 808 4000 or via www.nationaldebtline.org.