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Datamonitor: Consumer credit market to dip in 2007
Following the US sub-prime mortgage market and a worldwide credit crunch, the consumer credit market is expected to decrease in the final quarter of 2007 before making a slow recovery next year, according to Datamonitor.
Tighter lending criteria expected in the coming months could make it difficult for people to take out a bad credit loan as lenders are currently finding it more difficult to access finance on the money markets, the report claimed.
"Both lenders and consumers will find the consumer credit market tougher as a result of the global credit crunch as well as the prevailing issue of bad debt," said Maya Imberg, an analyst at Datamonitor's financial services practice.
However, she predicts that the market will make a slow revival, with an expected £229.8 billion in gross advances predicted for 2011, a figure up from £207.4 billion in 2006.
Research released this month by Alliance & Leicester found that British families with mortgages have been less likely to take out unsecured loans since the base rates began to rise in the summer of 2006.