Monthly credit card binge hits a record £17bn

CONSUMERS racked up a record £17.1billion of credit card debt last month amid fears a growing number rely on them for everyday purchases.

Statistics from UK Finance, which represents high street lenders, revealed monthly credit card spending was 11.6 per cent higher than a year earlier.

With Christmas just weeks away, charities have warned families they risk getting stuck in a debt trap if they go on a borrowing binge and their circumstances suddenly change.

Debt charity Stepchange has warned the rise in credit card spending could be storing up problems for the economy. A spokesman said: ‘ Unless someone’s income increases soon afterwards, the routine use of credit for everyday living expenses can trap people in a bigger debt burden very quickly.

‘If people struggle to pay essential bills one month, they may well struggle the next month, and so on, as the high interest and charges from borrowing credit builds up on top of their bills.

‘Creditors, utilities providers and landlords may be paid for now but it is unlikely to be sustainable.’

Data also revealed Britons put away less than £100 each on average in the past year in a stark illustration of the country’s savings crisis. An extra £6.3billion was added to personal deposits in the year to October, or just £96 each – the lowest savings rate since 1999.