Introduction
According to historical data from the Bank of England's Money and Credit reports, consumer credit net borrowing spikes significantly in late autumn, known as the November Spike. Net consumer borrowing through credit cards, car finance, and personal loans consistently experiences a sharp acceleration in November. This is primarily fuelled by aggressive retail promotions and early festive spending. However, we start to think about borrowing in the summer.
Most of us need to borrow money at some point in our lives. Using the right type of credit in the best way can help you deal with unexpected expenses, such as buying a new fridge, or planned expenses such as festive holidays. Find out what to consider first, to make sure you make the right decision.
Deciding whether to borrow money
There are some important questions you need to ask yourself before you borrow money. For example, can you wait until you have enough money without borrowing? And could you afford to pay it back if you did borrow the money?
If you’re struggling financially, first make sure you’re claiming all the benefits you’re entitled to and if there are grants or rebates you might qualify for. Also, see if there are other ways to cut back on your costs, for example by switching energy, phone, or internet provider.
If you tend to be impulsive when buying things, try giving yourself a cooling off period of at least two days. When you’ve had a chance to think about it, you might change your mind. If you’re facing higher living costs, find out about extra sources of income and support in our section Help with the cost of living. If you’re thinking about borrowing money to help pay your bills, you should consider getting free debt advice first. Find out more about Dealing with debt.
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