UK policymakers face a dilemma over public's slowing demand for credit

While the economy needs more borrowing in order to keep growing, personal debt is already at dangerously high levels

As the election on 8 June nears, the debate has intensified over how much Britain's frothy cappuccino-drinking economy can cope without endless dollops of interest-free credit.

Financial regulators are worried about it. So are the debt charity workers who pick up the pieces when the debt merry-go-round grinds to a halt. And they should be worried. Many of the biggest, shiniest new cars zipping round UK streets would still be sitting on the garage forecourt without ultra cheap credit deals that rival mortgages for their rock-bottom rates.