UK credit card debt is ballooning for all the wrong reasons

In normal times consumers spend for gratification - in this cost of living crisis they are spending out of desperation

When credit card balances begin to rocket, analysts are usually convinced the trend indicates consumers are growing in confidence and the economy is bowling along in rude health. In more normal times, consumers feel less concerned about the possibility of paying a super-expensive rate of interest if it means they can buy what they want straight away.

These are not normal times. Britain's economic recovery has ground to a standstill and a cost of living crisis means most things we buy are becoming less affordable by the day. So it was not surprising that City economists agreed that April's 1.4bn rise in credit card balances was most probably an act of desperation by middle- and low-income households.