We are currently experiencing technical difficulties with our telephone system.
We apologise for any inconvenience and are working to resolve this as soon as possible.
This website uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Continue
Secured Loans > Consumer borrowing leaps by £1.2 billion

Consumer borrowing leaps by £1.2 billion

8th May 2015 | Published by Evo Money

Consumer borrowing has escalated by as much as £1.2 billion from February to March of this year, the steepest rise since the financial crisis of 2007 to 2008, says the Bank of England.

The sharpest increase was in loans, overdrafts and other types of unsecured borrowing, accounting for £1.1 billion of the rise, according to Bank of England figures.

Credit card lending and mortgage borrowing remained largely flat. In fact, March saw 180 fewer mortgage approvals than the previous month. Credit card lending increased over the same period but by a relatively modest £200 million.

The surge in loan and overdraft consumer borrowing is probably due to the fall in the interest rates commonly charged by lenders. According to the consumer finance website, ‘Moneyfacts,’ someone borrowing £5,000 twelve months ago would have had to pay charges of 9.1 per cent. He or she would only have to pay 8.1 per cent now, on the same amount.

Both charities and economists are warning that the sharp rise in borrowing may lead to an increase in debt difficulties for consumers.

Howard Archer, chief economist at IHS Global Insight, cautioned that consumers are likely to be increasing their amount of debt in order to fund their spending. The charity for those in debt, StepChange, expressed concern that the surge in borrowing indicates that many are turning to credit to make ends meet, without having the means to repay all of their debt.

However, the Insolvency Service has reported the lowest number of personal insolvencies for ten years. During the first quarter of 2015, only 20,825 people were declared insolvent, the lowest number since 2005 and a decrease of 18.6 per cent from twelve months ago, one of the sharpest falls since records began

Category: Money
This post was written by Evo Money
Warning: Late payment can cause you serious money problems. For help, go to moneyhelper.org.uk

How our customers rate us

We’re proud of the high standard of our customer service and believe that each of our customers should be treated as an individual.
Evolution Money 96 out of 100, based on 178 reviews over the past year. 178 user reviews. Read our reviews

Members of the The Finance & Leasing Association

FLA logoWe are a member of the FLA (Finance and Leasing Association) and subscribe to its lending code.


Feeling social? Check out our social pages!

Tweet us on Twitter
Like us on Facebook
Add us on Google+

Our Address

Evolution Money,
9 Portland Street,
M1 3BE

Registered Company Number: 06987852

Contact by Phone

General Enquiries:
0161 814 9158

0161 814 9165

Contact by Email

Evolution Money Limited is a licensed credit broker and service provider to Evolution Lending Limited. If your application doesn’t meet the underwriting requirements of Evolution Lending Limited we may pass your information to other lenders and brokers. Evolution Money Limited is a company registered in England & Wales, registration number 06987852 and registered at 9 Portland Street, Manchester, M1 3BE. Authorised and regulated by the Financial Conduct Authority, firm reference number 708324.

© 2022 Evolution Money | Cookies | Complaints Policy | Breaking Down Our Loans | Terms & Conditions | Fair Processing Notice | Sitemap
Start Here
Please wait

Please wait

Don't leave just yet!

Evolution Money are a multi Award Winning UK finance company with thousands of happy customers!

Award Winning

Our friendly loan advisors can let you know if you're eligible for a loan without affecting your credit score. Why not give us a call today!

Freephone 0800 144 8188

Back to Evolution