Consumer borrowing reaches highest level since 2004
Consumer borrowing has reached its highest level since 2004, with an additional £1.5bn borrowed in November.
According to the latest Bank of England lending data, this represents the highest increase in borrowing for 18 years.
Individuals borrowed an additional £1.5bn in consumer credit in November – up from £0.7bn in October. This was higher than the previous six-month average of £1.1bn.
“After a couple of months of subdued volumes in the consumer credit sector, borrowing bounced back strongly in November with the highest credit card borrowing levels seen in nearly two decades,” said Emma Steeley, chief executive at digital lending marketplace Freedom Finance.
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“Households will have been feeling the pinch ahead of Christmas as the reality of the much-feared October energy price cap kicked in and colder weather forced on the central heating. Borrowing levels typically rise ahead of the festive period as Brits feel the pressure to entertain and this year looks to have been no exception despite the gloomy economic headlines.”
Steeley urged lenders to shop around for the best deal when seeking consumer credit options, and noted that fintech lending could offer the best rates.
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“With rates on borrowing becoming increasingly costly, it is vital that consumers with expensive debt look to consolidate to cheaper options as they reach the end of attractive, interest-free periods or face higher interest repayments on credit card debt built up over last year,” she said.
“It is important that everybody accessing the consumer credit sector is exercising best practise. Shopping around and taking advantage of the latest technologies means would-be borrowers can find the best rates available to them without fear of being rejected and damaging their credit score.”
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