UK in credit splurge despite pay squeeze, Bank figures show

Soaring level of borrowing on credit cards, overdrafts and loans could bolster case for interest rate rise, say experts

Britain's hard-pressed consumers are increasingly turning to credit cards, overdrafts and loans to support their spending, according to the Bank of England.

Threadneedle Street's monthly report on money and credit found that the outstanding amount of unsecured consumer credit rose by 10.3% in the year to May, five times as fast as the growth rate of earnings.

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