The English are increasingly buying on installment

According to recent figures from the English research firm, Finance & Leasing Association (FLA), more and more consumers are buying large installment purchases. In addition, credit card and personal loans are the most popular forms of consumer credit in England.

English consumers are more likely to opt for installment purchases than a loan
English consumers are more likely to opt for installment purchases than a loan

Shoppers in England are increasingly buying on installment, recent figures from FLA indicate an increase of 28%. In addition, consumers often borrow via a credit card or personal loan , this number increased by only 1% this year. Research firm FLA also saw the number of car loans increase with a growth of 24%, followed by a second mortgage (17%).

A financial advisor at Think Money may explain: “Purchasing on installment has continued to increase, mainly due to the ease with which TVs and household appliances can be purchased. The 'Buy now, pay later' deals are useful for many consumers in an emergency, such as when the freezer breaks. It temporarily gives consumers the idea of ​​saving money, even if it is a major investment. ”

“However, consumers have to look carefully at the actual interest that they pay. In many cases this is higher than a loan or credit card rate. ”

Despite the rapid growth of installment buying, credit card and personal borrowing remain by far the most popular forms of consumer credit in England. Last year, borrowing amounted to nearly £ 3 billion in England. In addition, the car loan was the most popular with a total of 1.4 billion pounds and 249 million pounds were bought on installment.

Published on July 24, 2012 at 3:22 pm by the editors .

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