Loan applications 'to rise in new year'
Published On 21 December 2007
January is likely to see an increase in people applying for loans, as consumers seek to consolidate debts run-up in the Christmas period.Neil Munroe, external affairs director for Equifax, said that is a "common trend" for people to seek loans and mortgages after the festive period to consolidate short-term borrowing.
The difference early in 2008, however, is that lenders may be less likely to approve loans in the wake of the credit crunch.
"The issue is whether those people who relied on that capability will find it more difficult to get credit," Mr Munroe said.
"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 figures from CreditAction, total UK personal debt was £1.39 trillion at the end of October this year.
