…but card debt rises at its fastest since 2006

BRITAIN’S credit card binge has gathered pace, with households borrowing at the fastest rate in more than 11 years.

Official figures published by the Bank of England yesterday revealed an alarming surge in spending on plastic.

The total amount owed on credit cards jumped by £600million last month to a record £68.1billion – or an average of more than £2,500 per household.

After a brief slowdown, the annual increase in borrowing picked up sharply to 9.7 per cent in the year to April, up from 8.9 per cent in the previous month. It means credit card debt is growing at the fastest pace since February 2006, during the reckless lending spree that preceded the financial crisis.

The pick-up in borrowing is likely to alarm the Financial Conduct Authority and the Bank, both of which have raised concerns about the rapid rise in household debt.

Lenders have been criticised for fuelling a dangerous debt bubble through controversial teaser rate credit cards which encourage people to rack up more debt. Analysis by website Moneyfacts has found that the average introductory deal period now lasts for 381 days – an increase of more than 100 days from last year.

John Mann, Labour candidate for Bassetlaw, said: ‘Consumers are being given a false sense of security which will come back to haunt them and the economy.

‘This could ruin the chances of the economy coming out of this period of slow growth. There needs to be tighter regulation for these cards which encourage people to mismanage their money.’