UK Consumer Borrowing Rises to Pre Crisis Levels

Consumer borrowing on credit cards, loans and overdrafts is growing at its fastest rate since before the financial crisis, figures from the Bank of England show.

Unsecured consumer credit was up by 8.3% in the 12 months to November 2015, the Bank’s figures show, with consumers borrowing an additional £1.5bn in November, compared to an average increase of £1.2bn over the previous six months. The figure was the highest monthly rise since February 2008, and the ninth month running that it has been in excess of £1bn.

Borrowing on credit cards rose by £411m, up from £271m in October, while debt on personal loans and overdrafts increased by £1.1bn over the month.

The figures, which are likely to stoke concerns about household finances, show the annual increase in consumer credit is at its highest level since February 2006, before the financial crisis began.

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza