Customers are more and more searching for to consolidate their debt, in line with the most recent evaluation from Freedom Finance.
41 per cent of the individuals who looked for a mortgage by way of the embedded finance platform in April have been searching for to consolidate their debt. Freedom Finance believes that this is because of rising rates of interest on overdrafts and bank cards.
The platform’s newest credit score monitor revealed that bank card charges are actually at their highest stage since December 1997.
Learn extra: Credit score seekers may flip to various lenders as borrowing falls
Debt consolidation was the commonest cause for shoppers searching for loans final month, whereas 25 per cent of individuals have been searching for out loans for dwelling enhancements.
Freedom Finance has additionally reported that fifty per cent extra persons are searching for mortgage merchandise on its platform, reflecting the rising demand for private lending options.
Learn extra: Make investments & Fund: P2P lending has confirmed its resilience
“We have now seen a transparent shift available in the market of the previous few months the place all sorts of debtors are shifting towards utilizing private loans to repay different costlier types of debt, equivalent to bank cards and overdrafts,” mentioned Andrew Fisher, chief development officer at Freedom Finance.
“The altering circumstances as charges have risen have additionally seen folks look to borrow in new methods. We’re seeing extra folks and totally different demographics coming onto our platform to search for probably the most acceptable credit score merchandise out there to them.”
Learn extra: Freedom Finance launches Lender Efficiency Index