Credit card lending booms as Britons rein back other borrowing

The boom in credit card lending accelerated at the end of the second quarter of the year as Britons reined back other forms of borrowing, according to data published today by the Bank of England.

The three-month annualised rate of growth in credit card lending rose to 11 per cent in June, the Bank’s consumer credit figures showed, the joint fastest rate since April 2017 and only the fifth month of double-digit growth since the financial crisis.

The stock of outstanding credit card lending has risen steadily – and far faster than the growth of the broader economy – even as real wages have stagnated, as Britons have turned to readily available debt to sustain their living standards. Total borrowing now stands at £72bn, up from £65bn two years ago.

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