Rise in consumer credit borrowing may signal financial distress, says StepChange Debt Charity
1 September 2025
New Money and Credit data published today by the Bank of England has shown an increase in net borrowing of consumer credit by individuals – to £1.6 billion in July, up from £1.5 billion in June.
While higher borrowing can sometimes point to increased consumer confidence, StepChange Debt Charity warns it may also reflect growing financial difficulty for consumers, as more people rely on credit to make ends meet. StepChange has seen a slight rise in client volumes in recent months, with July revealing a 7% year on year rise in people seeking help with their debts.
The charity is urging anyone who may be struggling to keep up with credit repayments to seek free debt advice.
Simon Trevethick, Head of Communications at StepChange Debt Charity, said:
"This year has been tough on household finances, with steep rises in the cost of bills and utilities, and a recent rise in inflation, people may be relying on credit to cope. At StepChange not only have we seen more people coming to us for help in recent months, but debt levels continue to climb, particularly in arrears on essential household bills.
"If anyone is worried about repaying their debts, we would urge you to speak to your creditors who will have support in place. It’s also never too early to contact a charity like StepChange for free and impartial debt advice. The sooner you reach out for support, the sooner you can get your finances back on track."
Notes to Editors
- Bank of England’s Money and Credit data for July can be found here
- StepChange’s client data for July can be found here