“With the UK economy steering ever closer to a recession, you’d be forgiven for thinking that consumer borrowing would follow the downward trend, however, today’s figures from the Bank of England reveal that despite the toughening economic situation consumers have not turned away from borrowing to support their current financial needs.
“While business and consumer confidence may be at, or nearing, all-time lows in the first quarter, there still appears to be an appetite for credit from the nation’s consumers. Before Christmas, we saw an increase in the adoption of BNPL and so-called ‘pay day’ loans to make up the shortfall in earnings many were experiencing, and it seems this trend may continue into the new year.
“The credit sector will prove resilient in the face of ongoing uncertainty and while there are there are challenges to be faced, the sector will remain committed to providing customers support in navigating any economic uncertainties ahead.”
Paul Heywood, Chief Data & Analytics Officer at Equifax UK