By Clare Yates
2 min read
It looks like more households are reaching for their credit cards to keep up with everyday costs. According to the latest Bank of England figures, UK consumers are borrowing on plastic faster than they have in almost two years.
In November, net credit card borrowing hit £1 billion, up from £700 million in October, while total consumer credit climbed by £2.1 billion – a rise from £1.7 billion the month before. It saw the annual growth in credit card debt jump from 10.9% in October to 12.1% in November, the fastest pace since January 2024.
The increase comes amid rising living costs over the run-up to Christmas. Even though inflation eased during that time to around 3.2%, prices are still much higher than in recent years. The numbers suggest many households leaned on credit to cover both everyday spending and festive treats.
Other types of consumer credit, like personal loans and car finance, also rose by £100 million to £1.1 billion in November.
Staying in control of rising credit card costs
If you’re juggling balances or your interest-free credit card period is coming to an end, now’s a good time to take a look at your card. Standard variable rates can be eye-wateringly high, and once your initial deal expires, monthly interest can quickly pile up.
Switching to a 0% balance transfer card can give you some breathing room, letting you pay down balances faster without interest building up. And if you use your card for new purchases, a 0% purchase deal can help spread the cost without racking up charges.
Taking a few minutes to compare your options now can make a real difference. With borrowing on the rise, knowing you’re on the right deal helps keep your finances under control and avoids nasty surprises.