UK consumers increased their credit card borrowing at the fastest annual rate in 17 years last month, according to figures published on Tuesday, in a sign of the intensifying cost of living crisis.
Data from the Bank of England showed that the annual rate of credit card borrowing was 13 per cent higher in July than a year before.
The jump, the biggest since October 2005, comes as wages fail to keep pace with inflation, which has already hit 10 per cent, with some investment banks suggesting it could roughly double by the turn of the year.
The figures are a sign that households are struggling with the soaring cost of living, even before households are hit with an 80 per cent increase in energy bills. This will take effect from October 1, and could leave many people with the choice of cutting spending or borrowing more.
The data also showed individuals took on a net additional £1.4bn in consumer credit in July, down from £1.8bn in June, but above the 12-month pre-pandemic…