BOE predicts a fall in personal loan demand
The rate at which new personal loan agreements had been issued during the first quarter of 2008, demonstrated a noticeable decline in demand for consumer credit, suggests a new report.
According to the Bank of England, annualised personal loan and general credit borrowing will decrease by approximately 1.5 per cent during the course of 2008, as Britain adjusts to the effects of the so called credit crunch.
More than £90 billion was accumulated through the usage of credit cards during the first month of 2008, whilst February saw an accumulative increase in credit borrowing by close to £1 Billion. However, although total credit borrowing was actually up in February, rolling quarterly forecasts suggest that credit consumption will decrease throughout 2008.
Industry analysts predict that consumers will remain hesitant with regards to acquiring anymore in the way of credit, especially whilst the future of the economy remains an uncertainty.
