A stark new warning has been issued over the UK's growing reliance on credit cards, as official data reveals borrowing is accelerating at its fastest pace in nearly two years.
Sharp Rise in Consumer Borrowing
According to the Bank of England's latest Money and Credit report, net borrowing on credit cards jumped to £1 billion in November 2025. This marks a significant increase from the £700 million recorded in October. Over the course of the year, the total amount of outstanding credit card debt has surged by 12.1%, representing the highest annual growth rate seen since January 2024.
The trend extends beyond plastic, with total consumer credit net borrowing reaching £2.1 billion in November. Economists and debt charities interpret this sharp uptick as a clear signal of the intense financial pressure facing British households, who are still grappling with elevated living costs.
Everyday Costs Drive Reliance on Credit
Despite a recent easing, with inflation falling to 3.2% in December, the price of essential items like food and energy remains stubbornly high compared to pre-pandemic levels. This persistent gap is forcing many families to use credit simply to cover their routine bills.
Simon Trevethick, Head of Communications at the StepChange debt charity, commented on the troubling pattern. "For many households, the increase in consumer credit borrowing in November may reflect the reality that everyday costs are becoming harder to manage without turning to credit," he stated.
He issued a specific caution regarding credit cards, noting they are "one of the most expensive ways to borrow" and warning that debts "can spiral quickly" if repayments are missed.
Housing Market Cools as Finances are Monitored
The Bank's report also highlighted a shift in the property market. While net mortgage lending increased to £4.5 billion, the number of mortgage approvals for house purchases actually dipped slightly to 64,500, suggesting a potential cooling in some areas.
The central bank has stated it will keep a close eye on household finances, with the rising tide of consumer borrowing expected to be a key factor in its upcoming assessments of the UK's broader economic stability. The concern is that continued dependence on high-interest credit could leave a growing number of households in a financially precarious position.
