15 April 2008
There will probably be a further drop in the amount of credit available to consumers in the coming few months, it has been claimed.
Most households have been disrupted by the credit crunch, UK Economist at Capital Economics Vicky Redwood stated, as both personal loan and credit card rates have changed.
Furthermore, those opting to take out mortgages have found that they are having to place down larger deposits while higher rates are levied in the main on these deals, she observed.
And the problems are unlikely to be averted in the near-future, she suggested, because of the economic turmoil.
"For the next few months this trend will continue, certainly, because of the continuing problems in the money market," she commented.
Those with credit cards have also seen their limits take a hit from lack of availability, Ms Redwood noted.
Availability of secured credit has dwindled in the past three months, the Bank of England stated in its Credit Conditions Survey.
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