Loans and Property
Credit cards and loans are a necessary evil for life, whether you’re paying off debts or aiming to buy a dream home, they are an essential part of modern life. The need is rising as records showed that credit card loans reached their peak, growing on record to their highest rates since the 2008 credit crunch. Could it be we’re regaining our trust with banks?
Over the years the British public has put over forty billion pounds on credit cards. Putting money on plastic has reached an all-time high with more of us putting money on the credit card with nearly ten million being borrowed on credit cards. Since the BBA started collecting data on credit card borrowing eighteen years ago, in 1997 when the figure was more around the four billion mark.
The figures come after backlash from the general public against payday loans with their high APR rates. Though we are borrowing more money with credit cards, the amount of credit card debt has fallen by twenty five percent since 2011. So those numbers surrounding credit cards may be a sign of our times, with our money becoming digitised in several ways, like online banking and contactless payment, credit cards are just one other way that you can pay securely. The era of cash being king is slowly fading out.
Interestingly the level at which banks are now lending to business is only crawling back into positive numbers. As we put our faith back into banks, they are slowly but surely returning the favour.
The level of borrowing is obviously the highest with perspective house buyers, and it hit that all time post-credit crunch level in August of this year. The threat of the interest rate hike in the coming months is said to be motivating on the fence mortgage customers to get the cheaper loans while they still can.
In a foreboding turn back to the credit crunch area, the last time that it was in August of 2008 with banks and building societies then lending out over thirteen billion pounds to those wanting home loans.
The price hike is said to show by some experts that people are now putting more money into bricks and mortar as they understand that housing is always a safe bet. Watching the price of city property across the country grow, it looks like a lot of people are realising that it’s the place to put your money or wanting to start a family with a secure roof over their heads. With over forty thousand loans were given for buying a home, while upwards of twenty five thousand were agreed for re-mortgages.
Changes in the way we view money are signified in our relationship with banks. It’s unlikely that the general public are going to forget the betrayal that came with the 2008 credit crunch, but if trust is fostered in a sensible way the British public will be able to prosper.