Credit supply and demand 'will fall'

09/11/2009

Britons have become much more careful about borrowing unsecured credit in 2009, a major new report showed today (November 9th).

PricewaterhouseCoopers (PwC), an accountancy firm, indicated that both the demand for and the availability of credit cards and personal loans had lessened in the credit crunch and recession.

The report added that APRs are likely to rise in future and that old-fashioned annual fees will begin to be reintroduced on cards.

Low-income Britons could also become increasingly shut out of being accepted for consumer credit.

"Some consumers will be forced towards less mainstream corners of the industry in search of credit," PwC said.

However, the report added that other customers, concerned about the possibility of job loss, would become less willing to borrow than before.

"Fears about the future have introduced a marked trend towards financial repair among UK consumers."

Data from the PwC report suggest that overall credit card borrowing dropped by three per cent to £64 billion over 2009.

The number of credit cards being used by Brits also fell by eight per cent and average borrowing by card by five per cent.

Tags; Debt Management and Banking, Retirement Money Problems, Credit Card Lifestyle, Recent Graduate Debt,

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