UK's borrowing binge is worrying the Bank of England

Rising household debt could spook the nation again so it is right to keep an eye on cheap credit

Alarm bells are jangling at the Bank of England. Households have been on a borrowing binge. Consumer spending is being underpinned by debt, with an increased dependency on personal loans, payday loans, car finance and - in particular - credit cards.

Threadneedle Street is worried about these trends - and rightly so. Household debt as a proportion of national income peaked at 160% at the time of the financial crisis and fell only modestly thereafter. Now - having bottomed out at 140% of GDP - the ratio is on the rise again.