3 April 2008
Personal borrowing levels rocketed in February, mainly via personal loans, according to new figures published by the Bank of England.
Unsecured borrowing statistics jumped by £2.4 million during the month, it said, the biggest increase seen since 1987.
Economists suggested that consumers are falling into debt as the impact of the credit crunch really begins to kick in.
One of them, Vicky Redwood from Capital Economics, stated to the Times that this is probably not a "positive development".
"Consumers are simply resorting to unsecured borrowing in their time of need," she commented.
Such thoughts were matched by the economic consultancy Fathom, which said that these are worrying months.
It observed: "Together with the news that secured lending is getting harder and harder to come by, this could be a worrying sign of distress."
A recent survey from Association of Investment Companies found that a high number of people want personal finance education to be taught in schools.
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