What causes an increase in consumer debt.

• Lower Real interest rates. Low interest rates mean that loans are more attractive; therefore, it encourages a variety of borrowing, such as credit cards and loans.
• Confidence. Consumer confidence is important for encouraging people to borrow against the expectations of future earnings.
• Economic Growth. Higher economic growth tends to increase consumer confidence. When incomes are rising, people expect them to keep rising
• Supply of Finance. Greater supply of loans and credit cards. Banks more willing to lend to people with bad credit histories.

Record Debt levels threaten UK economy