“Despite the small slow-down in consumer credit growth, it remains high at over 10% and existing levels of household debt remain high by historical standards.
“Households, especially those already struggling financially, face a tough period ahead as real income growth slows and inflation begins to bite. Millions of families are already reliant on credit just to get by and debt advice services are seeing record demand. The risk of problem debt to even more households in the future is a very real one.
“The Prudential Regulatory Authority and the Financial Conduct Authority are conducting reviews into current lending standards and what the impact on financial institutions might be. But it is up to policy makers now to address what rising consumer debt could mean for households. We need to see proposals that will mean fewer people fall into problem debt and that problem debt is less harmful when it does strike.”