StepChange Debt Charity responds to the Bank of England’s Money and Credit statistics

29 February 2016

In response to January’s Money and Credit figures from the Bank of England, Peter Tutton, Head of Policy at StepChange Debt Charity, said:

“Consumer credit is still rising rapidly and although an increase is to be expected as people recover from Christmas, this is the biggest in a decade. We saw large, unsustainable increases in credit balances in the run up to the financial crisis and it led to widespread financial difficulty.

“An increase in lending may not translate to signs of increasing financial difficulty until it is too late, so it is crucial to ensure that lending decisions taken now are done so responsibly.

“Creditors also need to be aware of customers showing signs of financial difficulty. With early assistance and forbearance, people can avoid the nightmare of problem debt.”

Notes to editors:

1. Consumer credit increased by £1.6bn in January 2016. The figures showed an annualised increase of 9.1%, the highest since January 2006. They also showed the second-highest month-on-month increase since June 2005.

2. Statistics from Bank of England Money and Credit statistics, available here:http://www.bankofengland.co.uk/statistics/documents/mc/2016/Jan/moneyandcredit.pdf