Credit Card Lending In The Uk Is Growing At The Fastest Rate In 17 Years Borrowing Debt

Credit card lending rose by £740m in the month, 13% higher than last year, Bank of England figures showed, the biggest annual rise since October 2005. Analysts said a rise in inflation to 10.1% in July and the threat of escalating energy price hikes over the winter indicated the situation was likely to worsen. On Friday, the energy regulator, Ofgem, said the average annual household electricity and gas bill would rise to £3,549 a year from October, up 80% from April. Debt charities said the rise in unsecured lending showed households were under “relentless pressure” to meet monthly food and energy payments and called on the government to increase benefits for those hardest hit. Paul Heywood, head of data and analytics at credit rating agency Equifax UK, said: “The most vulnerable have run out of quick fixes, which is why we continue to see a significant increase in demand for credit.” Broader consumer credit, which also includes unsecured personal loans and overdrafts, grew at the fastest annual rate since March 2019, up 6.9% to £1.42bn. Households deposited an extra £4.3bn with banks and construction firms in July, compared with £2.6bn in June, suggesting that better-off households have started to build up a sizeable buffer of savings as a hedge against a worsening economy status. The Bank of England reported that lending for all forms of consumer credit was lower than in May, when it stood at £1.8bn, but remained above the average of the 12 months before the pandemic to February 2020, 1 £ billion. Joanna Elson, chief executive of the charity Money Advice Trust, which runs the National Debtline and Business Debtline, said targeted help should be a feature of any rescue package. “Today’s figures are yet another sign of the relentless pressure on household finances,” he said. “Friday’s confirmation of the huge energy price hike will only add to the worries of millions of people who are worried about how they will get by in the coming months. “For many households, however, options have already run out, with more turning to credit to meet basic needs. And for those who are already struggling, the situation will only get worse without intervention.” Figures covering mortgage approvals for house purchases showed the housing market had collapsed after falling from a peak last year, when stamp duty holidays on homes worth less than £500,000 sent monthly approvals above six figures. Subscribe to the Business Today daily email or follow Guardian Business on Twitter @BusinessDesk The Bank of England said mortgage approvals rose to 63,770 from a downwardly revised June reading of 63,184, beating economists’ forecasts in a Reuters poll for a fall to 61,725. Martin Beck, the chief economic adviser at EY Item Club, said pressure on home buyers meant a dramatic slowdown in house price growth was becoming increasingly likely. “Intensifying pressure on household incomes, deteriorating growth prospects and the prospect of a higher peak for interest rates have increased the risk of a hard landing scenario,” he said.

title: “Credit Card Lending In The Uk Is Growing At The Fastest Rate In 17 Years Borrowing Debt Klmat” ShowToc: true date: “2022-12-08” author: “Erin Renee”

Credit card lending rose by £740m in the month, 13% higher than last year, Bank of England figures showed, the biggest annual rise since October 2005. Analysts said a rise in inflation to 10.1% in July and the threat of escalating energy price hikes over the winter indicated the situation was likely to worsen. On Friday, the energy regulator, Ofgem, said the average annual household electricity and gas bill would rise to £3,549 a year from October, up 80% from April. Debt charities said the rise in unsecured lending showed households were under “relentless pressure” to meet monthly food and energy payments and called on the government to increase benefits for those hardest hit. Paul Heywood, head of data and analytics at credit rating agency Equifax UK, said: “The most vulnerable have run out of quick fixes, which is why we continue to see a significant increase in demand for credit.” Broader consumer credit, which also includes unsecured personal loans and overdrafts, grew at the fastest annual rate since March 2019, up 6.9% to £1.42bn. Households deposited an extra £4.3bn with banks and construction firms in July, compared with £2.6bn in June, suggesting that better-off households have started to build up a sizeable buffer of savings as a hedge against a worsening economy status. The Bank of England reported that lending for all forms of consumer credit was lower than in May, when it stood at £1.8bn, but remained above the average of the 12 months before the pandemic to February 2020, 1 £ billion. Joanna Elson, chief executive of the charity Money Advice Trust, which runs the National Debtline and Business Debtline, said targeted help should be a feature of any rescue package. “Today’s figures are yet another sign of the relentless pressure on household finances,” he said. “Friday’s confirmation of the huge energy price hike will only add to the worries of millions of people who are worried about how they will get by in the coming months. “For many households, however, options have already run out, with more turning to credit to meet basic needs. And for those who are already struggling, the situation will only get worse without intervention.” Figures covering mortgage approvals for house purchases showed the housing market had collapsed after falling from a peak last year, when stamp duty holidays on homes worth less than £500,000 sent monthly approvals above six figures. Subscribe to the Business Today daily email or follow Guardian Business on Twitter @BusinessDesk The Bank of England said mortgage approvals rose to 63,770 from a downwardly revised June reading of 63,184, beating economists’ forecasts in a Reuters poll for a fall to 61,725. Martin Beck, the chief economic adviser at EY Item Club, said pressure on home buyers meant a dramatic slowdown in house price growth was becoming increasingly likely. “Intensifying pressure on household incomes, deteriorating growth prospects and the prospect of a higher peak for interest rates have increased the risk of a hard landing scenario,” he said.

title: “Credit Card Lending In The Uk Is Growing At The Fastest Rate In 17 Years Borrowing Debt Klmat” ShowToc: true date: “2022-11-26” author: “John Council”

Credit card lending rose by £740m in the month, 13% higher than last year, Bank of England figures showed, the biggest annual rise since October 2005. Analysts said a rise in inflation to 10.1% in July and the threat of escalating energy price hikes over the winter indicated the situation was likely to worsen. On Friday, the energy regulator, Ofgem, said the average annual household electricity and gas bill would rise to £3,549 a year from October, up 80% from April. Debt charities said the rise in unsecured lending showed households were under “relentless pressure” to meet monthly food and energy payments and called on the government to increase benefits for those hardest hit. Paul Heywood, head of data and analytics at credit rating agency Equifax UK, said: “The most vulnerable have run out of quick fixes, which is why we continue to see a significant increase in demand for credit.” Broader consumer credit, which also includes unsecured personal loans and overdrafts, grew at the fastest annual rate since March 2019, up 6.9% to £1.42bn. Households deposited an extra £4.3bn with banks and construction firms in July, compared with £2.6bn in June, suggesting that better-off households have started to build up a sizeable buffer of savings as a hedge against a worsening economy status. The Bank of England reported that lending for all forms of consumer credit was lower than in May, when it stood at £1.8bn, but remained above the average of the 12 months before the pandemic to February 2020, 1 £ billion. Joanna Elson, chief executive of the charity Money Advice Trust, which runs the National Debtline and Business Debtline, said targeted help should be a feature of any rescue package. “Today’s figures are yet another sign of the relentless pressure on household finances,” he said. “Friday’s confirmation of the huge energy price hike will only add to the worries of millions of people who are worried about how they will get by in the coming months. “For many households, however, options have already run out, with more turning to credit to meet basic needs. And for those who are already struggling, the situation will only get worse without intervention.” Figures covering mortgage approvals for house purchases showed the housing market had collapsed after falling from a peak last year, when stamp duty holidays on homes worth less than £500,000 sent monthly approvals above six figures. Subscribe to the Business Today daily email or follow Guardian Business on Twitter @BusinessDesk The Bank of England said mortgage approvals rose to 63,770 from a downwardly revised June reading of 63,184, beating economists’ forecasts in a Reuters poll for a fall to 61,725. Martin Beck, the chief economic adviser at EY Item Club, said pressure on home buyers meant a dramatic slowdown in house price growth was becoming increasingly likely. “Intensifying pressure on household incomes, deteriorating growth prospects and the prospect of a higher peak for interest rates have increased the risk of a hard landing scenario,” he said.

title: “Credit Card Lending In The Uk Is Growing At The Fastest Rate In 17 Years Borrowing Debt Klmat” ShowToc: true date: “2022-11-14” author: “Michale Vinson”

Credit card lending rose by £740m in the month, 13% higher than last year, Bank of England figures showed, the biggest annual rise since October 2005. Analysts said a rise in inflation to 10.1% in July and the threat of escalating energy price hikes over the winter indicated the situation was likely to worsen. On Friday, the energy regulator, Ofgem, said the average annual household electricity and gas bill would rise to £3,549 a year from October, up 80% from April. Debt charities said the rise in unsecured lending showed households were under “relentless pressure” to meet monthly food and energy payments and called on the government to increase benefits for those hardest hit. Paul Heywood, head of data and analytics at credit rating agency Equifax UK, said: “The most vulnerable have run out of quick fixes, which is why we continue to see a significant increase in demand for credit.” Broader consumer credit, which also includes unsecured personal loans and overdrafts, grew at the fastest annual rate since March 2019, up 6.9% to £1.42bn. Households deposited an extra £4.3bn with banks and construction firms in July, compared with £2.6bn in June, suggesting that better-off households have started to build up a sizeable buffer of savings as a hedge against a worsening economy status. The Bank of England reported that lending for all forms of consumer credit was lower than in May, when it stood at £1.8bn, but remained above the average of the 12 months before the pandemic to February 2020, 1 £ billion. Joanna Elson, chief executive of the charity Money Advice Trust, which runs the National Debtline and Business Debtline, said targeted help should be a feature of any rescue package. “Today’s figures are yet another sign of the relentless pressure on household finances,” he said. “Friday’s confirmation of the huge energy price hike will only add to the worries of millions of people who are worried about how they will get by in the coming months. “For many households, however, options have already run out, with more turning to credit to meet basic needs. And for those who are already struggling, the situation will only get worse without intervention.” Figures covering mortgage approvals for house purchases showed the housing market had collapsed after falling from a peak last year, when stamp duty holidays on homes worth less than £500,000 sent monthly approvals above six figures. Subscribe to the Business Today daily email or follow Guardian Business on Twitter @BusinessDesk The Bank of England said mortgage approvals rose to 63,770 from a downwardly revised June reading of 63,184, beating economists’ forecasts in a Reuters poll for a fall to 61,725. Martin Beck, the chief economic adviser at EY Item Club, said pressure on home buyers meant a dramatic slowdown in house price growth was becoming increasingly likely. “Intensifying pressure on household incomes, deteriorating growth prospects and the prospect of a higher peak for interest rates have increased the risk of a hard landing scenario,” he said.