Consumer borrowing in Britain accelerated sharply in August 2026, with net unsecured lending rising by £2.464 billion in a single month. That was well above economists’ forecast of around £1.9 billion and marked the biggest monthly increase since records began in 1993.

Stronger borrowing can reflect confidence and a willingness to spend, but it can also suggest that some households are using credit cards, personal loans and other borrowing to manage everyday costs while inflation continues to squeeze disposable incomes.

What is behind the rise in borrowing?

Consumer confidence has improved, but affordability pressures remain. For creditors, that makes the direction of household finances especially important.

When budgets are stretched, unsecured credit can become a financial bridge. Households may b ...