If another recession hits, banks will quickly come to regret Britons’ recent splurge on the plastic. The stress test undertaken by the Bank of England last year was the toughest UK lenders had ever faced, simulating a global crash as bad as the crisis that sent the financial system into meltdown in 2008.

The test results made for sober reading. In the event of another downturn banks could suffer losses of around £18.5bn on consumer credit loans, which have swelled in recent years as Britons take advantage of rock-bottom interest rates by spending on credit cards and taking out personal loans.

Faced with another potential bubble, regulators are starting to take action.

Last week, the Financial Conduct Authority (FCA) proposed a host of new rules to help people struggling with long-term card debt, including forcing credit card providers to cancel interest to help borrowers in the most dire straits.