“The latest figures from UK Finance illustrate the impact the cost of living crisis is having on UK consumers, with credit card spend up 33.1% and outstanding balances up by 9.6% for the 12 months to May. TransUnion’s recent Consumer Pulse data found early indications that consumers could be gradually becoming more reliant on borrowing to get by, with a small increase in respondents (16%, up from 14% last year) who planned to use credit cards for payment of bills and other credit obligations.
“The reality is we’re likely to continue to see consumer use of credit grow over the rest of the year as the situation remains challenging. Finance providers need to be more data-led than ever to ensure they’re lending responsibly. This means assessing the affordability of new credit applications and predicting future payment behaviour as accurately as possible, against the backdrop of an ever-changing economic environment.”
Sam Welch, director of banking at TransUnion in the UK