New consumer credit lending increases

The latest figures from the Finance & Leasing Association (FLA) have revealed that consumer credit lending by FLA members increased by 1% in three months to March.

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The data reveals that consumers are still turning to credit to balance the books, with car finance recording the largest growth year on-year, up by 19%, to a total of £ 5,002m.

While borrowing on credit cards and personal loans fell by 9% in the first quarter of the year, this still made up the largest share of new consumer credit lending during this period at £7,271m.

This was followed by store instalment credit (up 3% to £674m), store cards (down 13% to £272m) and second mortgages (up 26% to £93m).

“The statistics show that consumers are continuing to use credit for everyday purchases like sofas, fridges, kitchens and cars.  But we know that trading conditions in the High Street remain challenging,” said Fiona Hoyle, Head of Consumer Credit at the FLA.

“This makes it more vital than ever that the Government’s proposed transfer of consumer credit regulation to the Financial Conduct Authority takes place on a sensible timetable, to ensure that consumers can continue to access credit when they need it and remain well protected.”

Recent figures from research conducted by Quidco reveal that the average overspend on credit card prior to payday comes in at average of £180 per person, with 41% of UK consumers attributing this overspend to the soaring cost of living.

More than a quarter of Brits also admitted that overspending on credit cards was down to their own mismanagement of their finances.

Further figures from the survey highlight that some consumers are putting measures in place to help stretch their budget further, with 91% comparing the market for the best deals before making their final purchase.

To get the best rates on your borrowing, you can compare personal loans with Propertywide.

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Posted by: Nicola Severn Categories: Finance Tags: , , Comments Off on New consumer credit lending increases

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