UK’s Credit Card Balances Are on the Rise
UK Finance just released new figures that show credit card debt across the country climbed by 9.5 % over the last twelve months, ending in February.
Brokers Share Their Insight
- More Unsecured Debt: “I’m seeing a lot of borrowers with massive unsecured balances that they’re now trying to tuck into their mortgages,” one broker says.
- Not a Luxury Lifestyle: Another broker notes, “This isn’t the result of fancy shopping trips; it’s the cost of everyday life rolling up in bigger numbers.”
Why This Matters for Homeowners
Simon Bridgland, director at Release Freedom, explains that with debt that high, many clients simply can’t make the monthly payments that would allow them to switch lenders. They’re locked into “no‑questions‑asked” deals, which keeps the banks a step ahead.
Some lenders offer attractive transfer rates, but the paperwork can be a maze. Often, this means borrowers are stuck with steep payments and no clear path out.
Regulators Need to Step In
- Risky Amounts: Michelle Lawson, director at Lawson Financial, warns that rising living costs and higher mortgage rates are driving people into dangerous debt levels.
- Policy Call: “Lenders should be more careful about approving multiple credit cards and loans for someone with no real safety net,” she says.
Bottom line: Credit card debt is tightening budgets across the UK. It’s high time lenders and regulators make sure people aren’t left hanging in a debt loop with no easy escape route.
