UK shoppers are still happy to borrow – but danger may lie ahead

Shoppers are still pulling out the plastic, but borrowing may become less choice and more necessity as budgets are squeezed

Britain went on a bit of a borrowing binge as Christmas approached. Unable to resist all the bargains on offer on Black Friday, shoppers pulled out the plastic. The rise in unsecured consumer debt in November was the biggest for more than a decade.

News of the increase in consumer debt is not exactly a surprise. When the Bank of England cut interest rates in August last year, the aim was to making borrowing cheaper and therefore more attractive. The message came through loud and clear: UK households need little encouragement to buy on the never-never. Unsecured credit is growing at an annual rate just shy of 11%

Related: UK credit binge approaching levels not seen since 2008 crash