The BoE said credit card borrowing was 11.6% higher than in April 2021, marking the biggest increase since November 2005. Households were hit last month by a double whammy of surging energy costs and higher taxes. The hit to disposable income - likely the worst since modern records began in the mid-1950s - means Britain is at risk of entering recession later this year.
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UK credit card borrowing soars by most since 2005 as cost-of-living squeeze tightens
"The solid rise in unsecured borrowing in April suggests that households are using credit to support their spending as the cost of living squeeze has intensified," said Nicholas Farr, assistant economist at consultancy Capital Economics.
