A borrowing BOOM

Credit card use is at a record high – so what can you do to stop yourself drowning in debt?

- JENNY ACKLAND

Credit card borrowing saw its biggest monthly spike in 30 years in February, a clear sign that many people are struggling to cope with the current cost of living crisis. In the UK, we borrowed £1.5 billion on credit cards, the highest monthly amount since records began in 1993, according to data published by the Bank of England.

Typically, a jump in credit card spending suggests shoppers are confident enough in their finances and the wider economy to take on debt. But the present rise in consumer credit is being driven by households turning to borrowing to protect their living standards.

Rising prices are making it impossible for some households to maintain their existing lifestyles without using credit card borrowing to plug the gap.

Average credit card debt per UK household is £2,100*

We speak to one woman who dug her way out of £40,000 worth of debt and to a money expert who could help you get out of yours.

‘I WAS ASHAMED AND EMBARRASSED’

Maddy Alexander-Grout, 38, is the founder of myviprewards.co.uk and lives in Southampton with her husband James, 40, and their two children, Ben, six, and Harriet, three. Until I began university in September 2002, I didn’t really think about credit cards.

Up until then, I’d always lived within my means. I had a Saturday job in retail and only spent the money I had.

But at the freshers’ fair during the first week of my media studies degree, there were lots of stalls offering students credit cards and overdrafts.