Despite the fact that the UK’s economy has pulled out of a double-dip recession, research has indicated that British consumers are still increasingly relying on borrowing to make ends meet.
The Bank of England’s (BoE) is expected to maintain interest rates at a record low of 0.5%, as the UK’s economy shows the first tentative signs of returning to growth.
Consumers are continuing to rely on borrowing to boost their budgets, with figures from the Finance & Leasing Association (FLA) showing growth in several areas of credit lending.
The UK’s ailing economy has meant that consumers are now carefully guarding their finances; with credit card lending last month falling by its greatest rate since August 2006.
Millions of potential borrowers could be refused a mortgage under new reforms proposed by the industry watchdog.