Brits borrowed a record £10.7billion on their credit cards last month, industry figures show
- Consumers borrowed record amounts on credit cards while savings plummet
- Amount of money put away in savings accounts sees weakest rise since 2007
- Experts warn people are using credit cards as a ‘crutch’ amid rising prices
Consumers are borrowing record amounts on credit cards while savings have plummeted, figures show.
In September £10.7billion was spent using credit cards, the highest in a single month since records began in 1997, according to trade body UK Finance.
At the same time the amount of money being put away in savings accounts rose by just 0.9 per cent on the previous year, the weakest rise since 2007. Just two years ago the annual growth was 5.1 per cent.
Consumers are borrowing record amounts on credit cards while savings have plummeted. Pictured, stock image of credit cards
Experts warn people are using credit cards as a ‘crutch’ amid rising prices and slower wage growth.
With Christmas approaching, they say the debt crisis will only get worse.
Rachel Springall, of Moneyfacts, said: ‘If people are borrowing more they are unlikely to be saving enough and using their credit card as a crutch.
Laura Suter, personal finance analyst at AJ Bell, said: ‘Last year saw the amount people spend outstripping the amount they earn for the first time in 30 years, on average by £900 per household.’
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