Debt advice: Using store cards 'could help spread costs'

23/02/2010

The Christmas period saw consumers make some savvy financial choices in a bid to keep costs down over the festive time.

A report from the Finance and Leasing Association (FLA) has revealed that, while lending to consumers is down overall by 15 per cent, many people are looking at widening their options by looking to different forms of credit.

This could help people manage their debt sensibly and avoid serious problems later.

Store cards proved to be particularly popular over the festive period, as did instalment credit plans.

The FLA's head of consumer finance Fiona Hoyle, commented: "Our figures tell a wider story of the recession. Overall, new consumer lending is down by 15 per cent. But the breakdown between different credit products tells us that customers are looking at the financial products available to them, and using credit products to meet specific needs."

She added: "Customers are using these products because they are flexible and allow consumers to spread payments for essential goods and keep them at levels that are within their budgets."

Posted by Fiona Smith

Tags; Budgeting Advice,

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