Consumer demand for personal credit such as credit cards and personal loans fell by 14 percent in the July to September quarter of 2009; while mortgage applications increased by 32 percent, a survey shows.
Veda Advantage’s quarterly Consumer Credit Demand Index, released today, reveals personal credit demand fell by 14 percent, in the July to September quarter of 2009 compared with the same quarter in 2008; while mortgage applications increased by 32 percent in the July to September quarter of 2009, reflecting the highest quarterly increase in mortgage applications in the past five years of Veda Advantage records.
According to Veda Advantage, consumers remain cautious about taking on more debt. Russell Evans, Veda Advantage general manager market and product development said resilience in household saving and the rising popularity of debit cards are likely to be the principle factors behind the fall in credit demand.
The study also found that amongst those who intend to apply for credit, the most common reason cited was for property purchase (41 percent).
“The record number of mortgage enquiries is one sign the economy is recovering with the property market currently experiencing marked activity,” Evans said.
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