Unsecured consumer credit grows at fastest rate in 11 years

Recent data from the Bank of England shows that household debt has risen to its highest level since just after the 2008 financial crash.

Personal debt grew 10.8 per cent in the year to 30 November, its fastest rate in more than eleven years, reaching £192.2 billion in the UK. The statistics also show that personal debt, including credit cards and bank loans but excluding mortgages and student loans, has been growing at an annual rate of 10 per cent for the past six months.

In further research from National Debtline conducted by YouGov, one in three Britons borrowed money this past year to pay for Christmas presents and food, with the equivalent of five million people saying they ‘regularly worry’ and ‘feel stressed’ about money in the run up to Christmas.

Debt charity Step Change is calling on the government to adopt a scheme that gives problem debtors 12 months breathing space to get back on track, with the government saying it is reviewing whether to bring in such a scheme.

If you have any concerns about your personal or business financial situation, our experts at partner business, BM Advisory, are able to assist. We specialise in finding innovative solutions for individuals and businesses in distress.

Contact Andy Pear or Mike Solomons of BM Advisory for more information and an initial free consultation, or get in touch with your usual Beavis Morgan Partner.