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Our response to the latest Bank of England Money and Credit Statistics

29 November, 2017

Responding to the latest report from the Bank of England, Peter Tutton, Head of Policy at StepChange Debt Charity, said:

"Despite a slight slowdown, consumer credit continues to grow strongly, outpacing incomes. Warning signs remain. Yesterday the Bank of England reiterated how lenders may be underestimating the losses they may face in a downturn.

While consumer credit represents only 7% of banks’ exposure, it amounts to 40% of impairments in the Bank’s stress test1.

This comes against the backdrop of forecasts of the longest sustained period of falling living standards since the 1950s2, so the fact that 9 million people are currently using credit in order to cover essential costs should put tackling problem debt high on the policy agenda.

Household financial stress and growing consumer credit create a pocket of risk which policy action can help to close.

Regulators need to ensure consumer credit lending is responsible and affordable for households; and with the Government now committed to introducing a Breathing Space scheme to help people manage problem debt, it’s crucial to get it right and into existence as soon as possible.”

Bank Of England Financial Stability Report, November 2017

The Resolution Foundation analysis of Autumn Budget 2017

Contact the StepChange news team on:

Tel: 0207 391 4598

Mobile: 07985 404 153

Email: press@stepchange.org

Follow our press team on Twitter: @StepChange

Helping you become debt free...

“I wish to thank your staff for all the great help they gave me when I was in so much debt.
They were a pillar of support to me.” (Leslie, Essex)

Foundation for Credit Counselling Wade House, Merrion Centre, Leeds, LS2 8NG trading as StepChange Debt Charity and StepChange Debt Charity Scotland. A registered charity no.1016630 and SC046263. It is a limited company registered in England and Wales (company no:2757055). Authorised and regulated by the Financial Conduct Authority.

*This is the average rating of our service based on the StepChange reviews on Feefo by DMP and DRO clients three months into their solution.

© StepChange Debt Charity 2017