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Risky credit card debt set to soar due to cost of living crisis

Risky credit card debt set to soar as cost of living crisis piles further pressure on Britons

Risky credit card debt is set to soar as the cost of living crisis piles further pressure on Britons. 

A report has found that credit card borrowing will increase by £9billion by September, boosting the UK’s total bill to £68.9billion. 

Risk: Soaring household bills and rampant inflation forced UK consumers to put £1.5billion more on credit cards in February than on a year before

Soaring household bills and rampant inflation forced UK consumers to put £1.5billion more on credit cards in February than on a year before, according to the Bank of England. 

Neil Kadagathur, chief executive of the lender Creditspring, which commissioned the study, said: ‘Credit cards are going to provide a lifeline for borrowers over the next few months.

‘However, with millions reliant on borrowing to survive, credit cards with high repayment terms and large risk of debt spirals are a high-risk option that could lead to increased debt for many households.’ 

With UK inflation running at a 30-year high of 7 per cent, one in six adults said they would need to borrow to survive over the next six months.

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Read more at DailyMail.co.uk