Family debt is rising by 10% a year

HOUSEHOLD debt is rising at the rate of 10 per cent a year, official figures show.

Families borrowed £8.17billion in August alone, 10 per cent more than in the same month last year. The figures – from the Office for National Statistics – cover credit and store cards, personal loans and car finance.

Spending in household goods stores grew by 11.1 per cent – the strongest monthly rate for a decade. This includes furniture and household appliances such as fridges, washing machines, televisions as well as purchases in DIY stores.

An extra £4.4billion was piled on to credit cards in August, a 9 per cent increase on the same month in 2017. Vehicle finance rose by 14 per cent – £2.5billion.

A spokesman for the Debt Advice Foundation described the rise in consumer credit as ‘very concerning’.

‘The debt advice sector has noted a significant rise in the level of priority debts our callers have, such as utility bills and council tax arrears,’ the spokesman said.

‘This would suggest that people are using credit to pay for essential living costs. When taking on extra debt, people need to be sure they can afford the repayments.’