StepChange responds to latest Money and Credit figures

^{30 January 2025}

The latest Money and Credit figures out today from the Bank of England show a rise in both mortgage debt borrowing and consumer credit borrowing in December.

StepChange Debt Charity says this could signal a potential uptick in consumer confidence, particularly within the mortgage sector. However, higher consumer credit use may cause difficulties for households repaying debt in the new year.

Richard Lane, Chief Client Officer at StepChange, said:

"The steady increase of mortgage debt borrowing is unsurprising as interest rates began to slowly fall toward the end of last year. But with rates still much higher than they were a few years ago, among our own clients we’ve seen a steep jump in the average amount of mortgage arrears – rising by over 70% year on year. Many households will be struggling to absorb higher mortgage costs, or it may mean they’re falling behind with other financial obligations in order to keep up.

"We’ve also seen a sharp rise in client volumes in January compared to December, which is often the case at this time of year – as people struggle with debt from the festive season or take the step to address debt in the new year. Unfortunately, with few signs of cost of living pressures easing up, our latest polling shows that two in five (41%) people expect their financial situation to worsen in 2025. If you are worried about your finances, it’s never too soon to get support – reach out to free and impartial charities like StepChange for expert guidance."

Notes to Editors

• The latest Bank of England Money and Credit figures can be found here.