Secured loans applications 'may increase in new year'
21/12/2007People are more likely to look for debt consolidation and lending options in the new year, it was suggested this week.
Although there is a "common trend" of consumers borrowing short-term over the festive season, there is always a rise in the amount of loans and mortgage applications in early January, said Neil Munroe, external affairs director at Equifax.
However, he added that those who have already used credit throughout Christmas may find it more difficult to obtain other forms of borrowing in the new year.
"At the moment the general view is that 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 data from Credit Action, the total UK lending amount grew by £8.8 billion in October of this year, contributing to the total personal debt of £1,391 billion.
Secured loans and lending increased by £7.3 billion in the same month.
 © Adfero Ltd
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