Bank of England and financial watchdog found 89% of card debt was held by consumers also in debt two years agoBritish consumers are trapped by credit card debt for longer than previously thought, according to a study by officials at the Bank of England and the City regulator, as unsecured borrowing reaches levels unseen since the financial crisis. Previously, Threadneedle Street had believed that credit cards were paid off more quickly, particularly in relation to mortgages. Nine out of every £10 of outstanding credit card debt in November 2016 was owed by people who were also in the red two years earlier, according to the study. The analysis follows the rapid growth in personal borrowing on credit cards, loans and car finance, now rising at almost five times the rate of growth in UK pay. Bank data shows personal debts have risen to the highest level since before the credit crunch, reaching more than £200bn – with credit cards accounting for more than £70bn of the total.

Source: The Guardian January 08, 2018 16:18 UTC