UK credit card borrowing surged at its fastest annual rate in almost two years, reflecting households' growing reliance on debt to finance the rising cost of Christmas. In November, individuals borrowed an additional £2.1 billion in consumer credit, up from a £1.7 billion increase in October, according to the Bank of England.
The latest figures show that net borrowing through credit cards rose by £1 billion to £700 million, while borrowing using other forms of consumer credit increased by £100 million to £1.1 billion. Annual growth in credit card borrowing accelerated from 10.9% in October to 12.1%, the highest rate since January 2024.
Experts warn that these figures may be a result of people struggling to cope with the rising cost of living and turning to debt as a means of survival. "For many households, the increase in consumer credit borrowing may reflect the reality that everyday costs are becoming harder to manage without turning to credit," said Simon Trevethick of the StepChange debt charity.
The rise in credit card borrowing comes despite a slowdown in retail sales volumes, which fell by 0.1% in November, and concerns over consumer spending power amid speculation about tax increases. However, households also increased their deposits with banks and building societies by an additional £8.1 billion in November, suggesting that people are reorganising their finances in anticipation of tax changes.
The growth in consumer credit may indicate an early rise in confidence among households to use borrowing to finance their spending, but it also raises concerns about the long-term implications for household debt levels and overall economic stability. As one economist noted, "today's release adds to the evidence that speculation about tax rises ahead of November's budget didn't influence households' spending decisions too much," suggesting that there may be limited scope for a pickup in consumer spending in 2026.
The latest figures show that net borrowing through credit cards rose by £1 billion to £700 million, while borrowing using other forms of consumer credit increased by £100 million to £1.1 billion. Annual growth in credit card borrowing accelerated from 10.9% in October to 12.1%, the highest rate since January 2024.
Experts warn that these figures may be a result of people struggling to cope with the rising cost of living and turning to debt as a means of survival. "For many households, the increase in consumer credit borrowing may reflect the reality that everyday costs are becoming harder to manage without turning to credit," said Simon Trevethick of the StepChange debt charity.
The rise in credit card borrowing comes despite a slowdown in retail sales volumes, which fell by 0.1% in November, and concerns over consumer spending power amid speculation about tax increases. However, households also increased their deposits with banks and building societies by an additional £8.1 billion in November, suggesting that people are reorganising their finances in anticipation of tax changes.
The growth in consumer credit may indicate an early rise in confidence among households to use borrowing to finance their spending, but it also raises concerns about the long-term implications for household debt levels and overall economic stability. As one economist noted, "today's release adds to the evidence that speculation about tax rises ahead of November's budget didn't influence households' spending decisions too much," suggesting that there may be limited scope for a pickup in consumer spending in 2026.
I'm not surprised by these numbers at all 
, people have been living paycheque to paycheque for years now and it's only a matter of time before they start using credit to get by 
. It's like they're putting off the inevitable 
, but I guess when you've got no other option, that's what debt is for 
. And yeah, Simon Trevethick makes a point - everyday costs are just getting higher and higher, so it feels like people are running out of options 
. The fact that they're putting more money into their savings accounts too is interesting 
people r gettin desperate w/ debt 2 cope w/ rising costs 
or two years of rent on a crappy apt 
what's goin on? is our economy doin alright? 
, it's gonna get bigger and faster, but we all know the consequences of not stopping it. I mean, back in my day, people didn't go around borrowing money for Christmas shopping like it was going out of style 
. We'd save up or maybe even make something ourselves 
. Now, everyone's just throwing cash at the problem and hoping to pay it off next month 
. I guess it's good that people are reorganizing their finances and putting more money in the bank. That's a step in the right direction 
. But, we gotta be careful with this credit card borrowing business. We don't wanna see people getting stuck in debt spirals that are hard to get out of 
.
. That's my two cents, take it for what it's worth 
.
Like, I get that life gets expensive but its not like people r saying we gotta take out loans for every single thing 
... I mean, it's like people are just trying to keep up with the cost of living, but maybe they shouldn't be relying on debt so much? It's not all doom and gloom though 
... hope it's just a temporary thing until people get back on track 
it's just not right, the cost of living is already through the roof and they're being forced to go further into debt? 
.
. Either way, it's all pretty interesting to watch from an outsider's perspective 
.
I mean, £2.1 billion more debt? 
What's stopping us from creating a culture that values saving and responsible spending over 'treat yourself' mentality? 
Will people be able to pay back all these loans or are we looking at a big debt crisis on our hands? 
. It's not surprising, really. I mean, we've been warned about the cost of living crisis for ages 
.
. Like, I get it, Christmas can be super expensive, but borrowing more money just to cover the costs? That's not a great idea at all 
. And what really gets me is that experts are saying this might be because people can't afford to pay their bills anymore... it's like we're living in some kinda crazy parallel universe where debt is just seen as a normal part of life 
... I'm no economist, but come on guys, you can do better than that 
.
But then again, if they're just saving up more money and putting it in the bank, that's not all bad, right?