“The rise in unsecured lending and softening in mortgage demand both point to the affordability pressures and uncertainty that continue to weigh on households, as many held off on major purchases but turned to credit to cover the cost of Christmas.
“The increase in short-term borrowing fed through to a rise in defaults, highlighting the growing financial stress many consumers are facing.
“Lenders must remain alert to the emerging financial pressures on households and ensure the right support is easy to access for those who need it.”
