Credit Card News

Demand for consumer credit set to soar

09-11-09, 03:10 in Credit Card News
Credit demand to rise.
Demand for consumer credit is likely to increase as economic recovery gets underway, according to PricewaterhouseCoopers (PwC).

But as more consumers seek to get credit, many lenders may be unable to match demand, the company warns.

Figures from the PwC reveal that total household borrowing has remained broadly constant over the last 12 months at around £1.5 trillion, with unsecured lending on personal loans and credit cards accounting for £230 billion.

On average, each UK household has total debt of around £60,000, made up of approximately £50,000 of secured debt and £10,000 of unsecured debt.

Richard Thompson, partner at PwC, said: "Large scale change within the sector over the next few years is inevitable. We're likely to see credit cards being reinvented as payment rather than borrowing tools."

The introduction of the Consumer Credit Directive in June 2010 is also set to bring changes to the way credit is sold by regulating the provision of information to customers.

Statistics from the Bank of England reveal that credit card lending increased last month by £0.1 billion.ADNFCR-2660-ID-19449685-ADNFCR

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