Lending in the store instalment credit market remained strong with growth of 25% compared with Q2 2011. Consumers usually use this type of credit to buy fridges, washing machines, electronics and larger items of furniture.
Second-charge mortgages, car finance and credit card and personal loan spending also grew in Q2. The store card market showed a decrease in borrowing.
Fiona Hoyle, head of consumer finance at the Finance & Leasing Association, said: “June delivered the sixth consecutive month of growth in the total amount of consumer credit provided by FLA members.
“Growth in car finance and store instalment credit has been helped by the good deals currently on offer via retailers and car dealers. Consumers are taking advantage of these to spread payments into manageable monthly sums.”
