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FLA credit figures show pre-Christmas growth in consumer markets
Consumers used 5% more credit in October than in the same month in 2010, according to the latest figures from the Finance & Leasing Association. Car purchases played a big part, with increases seen in credit for both new and used cars. Growth was also seen in personal loans, credit cards, and store cards.
As people prepare for Christmas, the Finance & Leasing Association has issued advice about the sensible use of credit:
- See if you can spread the cost – you may be eligible for low-rate credit deals in store. This could give you several months interest-free to pay off your purchases, meaning that you can spread the cost of Christmas.
- Many shops have already announced pre-Christmas sales. If you’ve not finished your Christmas shopping, see if you can take advantage of the lower prices.
- Don’t forget that a lot of bills will come through in January – and not just from your lenders. Try and keep some money back to pay them. If you took advantage of “buy now, pay later” offers, organise your finances so that you can make the contracted repayments when they fall due. Sit down and work out where you can make savings in your budget, so you can pay off your debts.
Fiona Hoyle, FLA Head of Consumer Finance at the Finance & Leasing Association, commented:
“As families prepare for Christmas, up-front planning is essential, particularly if you are using credit to buy those last-minute presents. Good deals are available on credit cards, and in-store when using store cards or store instalment credit. But before using credit, think how you’re going to pay it back, and what the best product is for you.
“If you’re in financial difficulty, seek help. Speak to a debt adviser or your lender as soon as possible to discuss a sensible repayment plan.”
Table 1: New consumer credit lending Oct 2011
|
| Oct 11 | % change on prev. year | 3 months to Oct 2011 | % change on prev. year | 12 months to Oct 2011 | % change on prev. year |
| Total FLA consumer finance (£m) | 4,311 | +5 | 13,438 | +3 | 51,988 | 0 |
| Store cards (£m) | 151 | +4 | 431 | -5 | 1,813 | -17 |
| Credit cards & personal loans (£m) | 2,693 | +3 | 8,244 | +2 | 32,863 | -1 |
| Store instalment credit (£m) | 203 | -7 | 561 | -12 | 2,478 | -9 |
| Second mortgages (£m) | 23 | -15 | 76 | -4 | 281 | -10 |
| Car finance (£m) | 1,139 | +11 | 3,797 | +9 | 13,417 | +3 |
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Note to editors:
In 2010 FLA members provided £72.0 billion of new finance to UK businesses and households. £51.7 billion of this was in the form of consumer credit, a third of all unsecured lending in the UK. And £19.0 billion of it supported the purchase of new and used cars, including more than half of private new car registrations in 2010.
For further media information, please contact:
Russell Hamblin-Boone, FLA
T: 020 7420 9656 E: russell.hamblin-boone@fla.org.uk M: 07810 374110
Helen Saxon, FLA
T: 020 7420 9664 E: helen.saxon@fla.org.uk M: 07918 766993