With warnings by the Bank of England that rates will rise and credit will contract, it looks like some cardholders are trying to top up spending before a change.
Credit card borrowing in the UK accelerated for the first time in five months in September, according to figures published by the Bank of England on Monday.
Consumers borrowed £641m on credit cards in September, up from £436m in August. This was the first increase in the monthly amount borrowed since April 2017
But regulators have been concerned about the possibility that the rapid growth of borrowing could lead to risks in the future.
A rush to pile on spending? This is surely going to create a castle built on sand.
There is a huge void, however. Consider this:
Last month the Financial Conduct Authority warned that half of all UK adults were “financially vulnerable” and relied on credit to make ends meet.
Maybe the point here is “Credit, get it while you can!”
Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group
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