Providing consumer credit is good for economic growth

The responsible provision of consumer credit is good for economic growth, according to research by the Association of Financing Companies in the Netherlands (VFN). The research emphasizes that consumers should be provided with comprehensive and simple information about a loan.

Research, carried out by Tilburg University on behalf of the VFN, shows that the provision of consumer credit has a positive effect on consumption and economic growth. It is emphasized, however, that it is necessary for consumers to receive information that is relevant to the decision whether or not to take out consumer loans. This information must be understandable because many consumers still find the information in question too complex.

A striking conclusion from the research is that responsible consumer credit would contribute to economic growth. “Due to the direct relationship between lending and consumption, the current phase of debts by consumers is leading to lower spending,” says Professor Harald Benink of Tilburg University.

Monthly loans decreased compared to 2008 from US $ 600 million to US $ 350 million. Secretary Bert Reitsma of the VFN states: “The market for new Consumer Loans has not yet recovered from the trough; A slight recovery in consumer confidence may, however, be the first signal of a improving market. The VFN Financing Barometer also indicates that consumers are more willing to finance purchases. ”

Published October 10, 2013 at 12:43 pm by the editorial team .

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