Concerns are growing the country faces a potentially dangerous debt spree as British families are borrowing money at the fastest pace for 11 years.
Latest Bank of England figures show a 10.3 % rise in unsecured debt such as credit cards and car finance with Britons borrowing an extra £1.8 billion in June 2016 – totaling £186 billion of unsecured debt.
Whilst there was a 3.3% growth rate on the amount owed on mortgages with a June 2016 increase of £3.3 billion – totalling £1.3 trillion of secured debt.
The figures imply confidence still remains high post the Brexit vote and the markets expect the vote to leave the European Union will make a Bank of England interest rate hike unlikely for years.
However there are fears that households who are taking advantage of historically low interest rates may be over-extending themselves by borrowing too much money, potentially making Britain’s economy less stable in the long term.