Lack of credit leads to change in habits - Loans - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Lack of credit leads to change in habits

Lack of credit leads to change in habits

Category: Loans

Updated: 24/12/2008
First Published: 22/12/2008

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Britons are budgeting more carefully in the economic downturn because finance is not readily available, it has been suggested.

According to Moneyfacts.co.uk spokesman Darren Cook, credit cards are now "simply not available", meaning consumers are now having to rely on their disposable income.

And he noted that prices are being influenced by the fact that less money can be obtained, stating: "The amount of credit in the market is decreasing so that is having an effect on inflation because there is less money available to go round."

Last month the consumer prices index rate of inflation dropped from 4.5 per cent to 4.1 per cent, according to the Office for National Statistics.

It means secured loans customers may see rates lowered, as the Bank of England has suggested that the base rate may come down in order to offset the possibility of deflation, which governor Mervyn King has predicted for late 2009.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Blue Monday hits nation’s finances

Today has been dubbed Blue Monday – the most depressing day of the year – and considering how many people could be battling with their finances this month, it’s little wonder.

Calls to make the loans market clearer

At first glance the personal loans market may seem simple enough, but get into the nitty gritty and it can be anything but. As a result, some are calling for action to make the market clearer and fairer for all.

Get the cheapest ever personal loan!

Have you woken up with a financial hangover after the festivities? Perhaps you’ve got big plans for the year ahead, or maybe you need a new car? Well, whatever your reasons for needing a loan, you can now snap one up for the cheapest ever rate!
 
Close