People in the UK appear increasingly keen to chalk up credit card and personal loan debt.
Demand has been at its highest since the recession, having spiked in the pre-Christmas period, according to a Bank of England survey.
More than half (55%) of lenders reported growing demand for unsecured loans in the last three months of 2014 while for credit card lenders it was 58%.
The Bank of England said this was the largest demand since the second quarter of 2007 when it first began its credit survey.
Days earlier the Bank reported that consumers borrowed a net £1.25bn in November alone. Gross consumer credit mounted up to nearly £19bn.
Consumer spending last year was the driving force behind the UK economy’s recovery, according to the Office for National Statistics. Household spending was at its strongest since 2010 in the autumn of last year.
The Bank survey also showed that fewer people were defaulting on their debts.
Gillian Guy, chief executive of Citizens Advice, said: “Many families are starting the year in the red. Credit card debt is the second most common debt problem brought to Citizens Advice Bureaux. Demand for credit cards and unsecured loans is at its highest point for seven years and is a warning that people are struggling to pay everyday costs."
