“Consumers borrowed an additional £1.6bn credit in March compared to £1.5bn in February. While borrowing on credit cards was flat, there was a slight uptick on borrowing through other forms of consumer credit, such as credit loans and payday loans.
“These credit figures have bounced up and down in recent months, but annualised figures show that there is increasing use of credit among consumers which may be being used to support everyday spending as the cost-of-living increases.
“There is further evidence of this pressure on household finances in the swing from net deposits to net withdrawals within banks and building societies, perhaps showing that consumers are using their savings to help balance the books.
“While the increased cost of borrowing has contributed to higher profits recorded in Q1 by major banks they have also seen a rise in the number of loans that have run into difficulty. This will remain a key focus for banks over the next few months as the impact of rate increases feeds through the system."
