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The Bank of England has issued a warning to Brits as a worrying problem gets worse.

Britons are increasingly turning to credit cards to make ends meet, with borrowing climbing at its fastest annual rate in almost two years, official figures reveal.

The Bank of England's latest Money and Credit report shows net credit card borrowing jumped to £1 billion in November, up from £700 million the previous month.

Over the year, credit card debt surged 12.1%, which is the highest annual increase since January 2024.

Total consumer credit also rose sharply, with net borrowing hitting £2.1 billion in November.

Economists and debt charities warn the trend reflects mounting financial pressure on households still grappling with the fallout from rising living costs.

Even though inflation has eased slightly - falling to 3.2% in December - essentials like food and energy remain significantly more expensive than pre-pandemic levels, forcing some families to rely on borrowing just to cover everyday bills.

Simon Trevethick, Head of Communications at StepChange debt charity, said: "For many households, the increase in consumer credit borrowing in November may reflect the reality that everyday costs are becoming harder to manage without turning to credit."

Mortgage borrowing patterns also shifted. Net mortgage lending rose to £4.5 billion, but approvals for house purchases edged down to 64,500, suggesting the housing market is cooling in some areas.

There are fears that continued reliance on high-interest credit cards could put households in a precarious position.

Mr Trevethick said: "Credit card debt is one of the most expensive ways to borrow. If people fall behind, it can spiral quickly."

The Bank of England said it would continue monitoring household finances closely, with the rising tide of consumer borrowing likely to feature in its next assessments of economic stability.