Demand for credit may signal the need for debt help
Demand for credit may signal the need for debt help
- Thursday, 4 February 2010People relying on credit may find themselves needing
debt help, following a new report indicating that consumers are reverting back to borrowing.
The latest Bank of England figures reveal that net borrowing on credit cards, loans and overdrafts has overtaken the amount being paid back by consumers for the first time since June.
Consumer credit increased by £0.1 billion, above the previous six month average of a net repayment of £0.3 billion, and credit card lending increased by £0.2 billion.
Total net lending to individuals rose by £1.2 billion in December, according to the Bank of England, double the average of the previous six months.
Commenting on the figures, head of consumer finance at lovemoney.com Ed Bowsher said the rise in demand for credit is not "dramatic", and was more a reflection of people becoming increasingly confident.
"It is all just part of the general picture that we are seeing in the economy where people are getting a bit more confident but they are still nervous, they still want to save; they don't want to splurge," he said.

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