Credit card lending grew at its fastest pace in almost 17 years in June, figures from the Bank of England show.
Credit card borrowing grew at an annual rate of 12.5% - the fastest pace since November 2005.
Figures from the bank also showed that consumers put less money aside to save last month.
Analysts warned that increased borrowing and reduced saving suggest households are struggling to cope with the rising cost of living.
Prices in the UK continue to rise at their fastest pace in over 40 years, driven by higher fuel and food costs.
UK inflation, the rate at which prices are rising, is currently 9.4%. However, wages are not keeping pace with regular wages increasing by just 4.3% annually between March and May, according to the latest official figures.
The latest Bank of England figures showed that households deposited an additional £1.5 billion with banks and building societies in June, while borrowing rose, far less than the £5.2 billion total in May.
Nicholas Farr, Assistant Economist at Capital Economics. said: “The surge in borrowing is likely a sign that high inflation is forcing households to turn to borrowing to meet their spending.
“The 1.5 billion increase in cash in household bank accounts.”
Those numbers may just be the “tip of the iceberg,” according to Laura Suter, head of personal finance at AJ Bell.
“As soon as the energy price cap moves up again in October and we all consume more energy in winter, this [borrowing] The numbers will continue to rise,” she said.
“Also, while some people still have savings to draw on now, when they run out, more people will have to go into debt.”
Bank of England figures showed that home purchase approvals, an indicator of future borrowing, fell to 63,700 in June from 65,700 in May.
“Overall, the June money and credit data add to the signs that higher inflation and interest rates are taking their toll on households,” Mr Farr said. “As inflation and interest rates continue to rise, we believe the economy will soon slide into recession.”
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