The Month in Review: Our Top Industry News from May 2015
We bring you this month's most important stories in credit and finance.
May was a busy month with many fascinating news stories breaking. Below we analyse some of the most prominent and relevant stories from this month, and discuss the effect that they might have on your finances.
The month kicked off with a bang with the news that UK consumer spending has risen to the highest levels since the financial crash. This is good, as the higher demand for credit means there will be better deals on the market. However, as ever, it is important to manage borrowing responsibly and only take out credit you can afford to pay back. Taking out credit that is unmanageable and failing to repay could adversely impact your credit scores.
It was encouraging to hear just a few days later that actually people in the UK are confident about their debts. According to research from Lloyds Bank, the vast majority of people with debts such as personal loans, credit cards and overdrafts are feeling confident about their ability to repay what they owe.
Further positive news was the finding by the Council of Mortgage Lenders, which showed that the number and proportion of mortgages in arrears or ending in repossession fell during the first quarter of the year. We’re pleased to hear this news because it means that lenders are extending credit responsibly and consumers are comfortable in repaying this credit. This can also have positive implications on the borrowers’ credit scores, as having a history of successfully repaying the credit you owe is an encouraging indicator to credit score agencies and lenders that you are a good candidate.
We also welcomed the news that more people are saving regularly. The Lloyds Bank Savings Report revealed that nearly seven in ten (68%) of us have managed to save over the last year. In addition nearly half (44%) put money away at least once a month, which was up from 37% when the research was conducted in Q4 of 2014. This suggests that many people’s finances are improving, which will benefit their credit reports and scores.
Finally, last week, The Payments Council revealed that non-cash payments have overtaken cash payments in the UK. This demonstrates a substantial shift in our spending behaviour, as we spend more on credit and debit cards, as well as other forms of non-cash payment. As everyone is spending more on cards, we need to make sure that we are getting the best deals. The best credit card deals are often reserved for those with the best credit scores, so knowing your score before applying is important.
In the past month, we have learned that consumer lending has increased but so has the borrowers’ confidence that they can afford to pay back their debts. Additionally, the news that people in Britain are saving more regularly and the number of mortgage repossessions is falling, indicates that we have greater control over our finances.
All the stories referenced: