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.

Accountancy firm PricewaterhouseCoopers has indicated that both the demand for and the availability of credit cards and personal loans has decreased during the recession.

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

PWC say that "Some consumers will be forced towards less mainstream corners of the industry in search of credit".

However, the report claims that customers concerned about loosing their jobs would now be less willing to borrow than before.

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.

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