Britons saddled with record debts
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Britons have saddled themselves with a record level of debt, the Bank of England revealed yesterday.
The disclosure came after other signs of a spending boom prompted warnings of an interest rate rise.
Total personal borrowing rose by £6.8bn in November, the largest monthly cash increase since the Bank started keeping records in 1993.
Mortgage lending grew by £5.8bn, an annual increase of 10 per cent and the first double-digit rise on record. Credit card and hire purchase spending also grew at a solid pace. Consumers are now carrying more than £723bn of outstanding debt, or some £12,200 for every man, woman and child.
The figures came a day after the Nationwide building society said house prices were rising at their fastest rate since 1988, and as retailers reported their best Christmas since 1987.
The echoes of the boom and crash of the late 1980s prompted Sir Edward George, the Bank's Governor, to warn on Thursday that he might have to increase rates. Michael Hume, the UK economist at Lehman Brothers, gave a 5 per cent chance of a rise next week.
But Jonathan Loynes, the chief UK economist at Capital Economics, said yesterday's figures showed the domestic economy was holding up in the face of a global slowdown. "The Bank needs to stand ready to lower rates again if there are any signs of consumer spending ... slowing while the global background remains so weak."
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments