Emma Steeley, CEO at Freedom Finance, one of the UK’s leading digital lending marketplaces, said: “Credit card spending collapsed in September after several months of strong growth, reflecting plummeting consumer confidence. With average quoted household rates on credit cards reaching their highest level since the 1990s, this borrowing has become expensive – particularly for households that revolve a balance.
“Demand for other types of lending, predominantly personal loans and car finance, has maintained the levels we have seen through much of the year. However, it will become increasingly important that consumers looking to consolidate expensive debt shop around as they reach the end of shortening interest-free periods or face higher interest repayments on credit card debt built up over the year.
“They should be shopping around and taking advantage of the latest technologies so they are only offered credit cards they are eligible for. This will help borrowers navigate the market without fear of being rejected and damaging their credit score while finding tailored products that will support their finances in this difficult economic period.”
Source – Money and Credit – September 2022 | Bank of England
