Since the beginning of 2018, the demand for consumer credit is on the rise. This rise is generally explained by the dynamism of the rates. Focus on the causes and consequences of this increase.
First, it should be noted that revolving credit or permanent credit is part of consumer credit, but because of the strengthening of the law in recent years, the share of these credits has declined. This has tarnished for nothing in the world the popularity of consumer credit.
Reasons for increasing the use of different types of consumer credit
The inflation of personal loans is the first explanation for the increase in the use of consumer credit . This year, we note that many individuals take advantage of borrowing rates that are low enough to apply for a loan, and this, in order to achieve a personal project such as the purchase of real estate equipment. You can probably notice that banks and credit organizations are lowering the margins of the rates they propose to increase their client portfolio.
Borrowing is raging in the automotive sector. Requests for credit for the purchase of a vehicle increased by 20.3% over the previous year. The favorable rates motivate the borrowers. The new standards and measures adopted by the government have something to do with it.
The consequences of the inflation of credit applications
This increase in demand for consumer credit inevitably has effects on the purchasing power of households. These are automatically subject to rising prices for some products useful in everyday life. To support themselves, each household decides to resort to a request for credit …. And so on.
Borrowing money from a credit institution is a quick and easy way to solve financial problems. Some households opt for personal loans to save their resources and money. This allows them to position themselves for funding instead of using savings.
If you decide to get started, you too, if you are interested in consumer credit when you do not have time to go to a financial institution, know that you can make a personal loan online . There are indeed many sites on the Net that offer this kind of service. To find the best credit that suits your repayment possibilities, it is possible to use a credit comparator. You can then have the ideal credit rate that would match your income.