Xmas spenders 'borrow money in January'
Fri 21 Dec 2007 10am
The first month of the new year will see a surge in
loan applications as consumers look to consolidate their Christmas
debts, a financial expert has stated.
Neil Monroe, external affairs director at Equifax, said that January traditionally sees an increase in
loan customers, with many people borrowing more money to cope with
debts accrued over the festive period.
However, he warned that these consumers may find access to
credit more difficult than usual next month, because
loan providers are becoming more selective with their lending habits as a result of the
credit crunch.
Mr Monroe explained: "The issue is whether those people who relied on that capability will find it more difficult to get
credit.
"If they are in the marginal area - so if their
credit score is only marginally acceptable for lenders - they may find it more difficult."
According to Credit Action, the average UK household has
debts worth £8,920, excluding
mortgages.
