Online Loan Lenders Gear Up For Holiday Demand as Shopping Surge Projection Grows
The holiday shopping surge is on the horizon, and so are personal loan companies.
Personal loan lenders are gearing up for what they see as an upcoming personal loan demand that is due to the big holiday shopping season. Personal loans offer consumers a way to buy more gifts without increasing their credit card debt burden while at the same time improving their credit history by repaying the debts on time. Loan providers state that personal loans are becoming increasingly popular with UK citizens because of improvements in online personal lending options, which make it easier for UK citizens to get personal loans without having to put any collateral down against them.
Exploding Prices for Consumer Goods in the United States and UK Fuel Expectation For Demand in Loan Growth
The Association of British Credit Unions has stated that there has been a 6% increase in personal debt levels over last year's holiday season as personal loan distributors expect a similar holiday shopping increase this year. This expectation follows a study that has predicted personal debt levels will increase by another 3% in the coming year if prices for consumer goods continue to explode.
Consumer credit card debt in the United States is expected to reach over $1 trillion dollars by the end of 2022, a 32% increase from 2021's total of $801 billion personal loans dollars. A new report also states that personal bankruptcy filings reached nearly 1 million last month, the highest number ever recorded for one month. The personal bankruptcy rate was projected to exceed 2 million filings during 2009 by its peak according to analysts at Experian, which would be an all time record surpassing even 2020's personal bankruptcy rate at almost 1.6 million personal bankruptcy filings.
Short Term Lenders Offering Loan Options from One Month to Thirty Six Months for Repayment
Spectre's personal loans rates are an average of 4% higher than the previous year's holiday shopping season, which is representative of what personal loan providers expect to see as demand for personal loans increases throughout this holiday season. Experts at personal loan providers have stated that during the 2021 holiday shopping season there was a 10% increase in personal loan volume compared with 2021's numbers. Personal loans experts also state that if interest rates do not change by the end of this year they may experience even larger increases in personal loan volume next holiday shopping season.
Personal Loans Make It Easier For Consumers To Improve Their Credit Histories Without Putting Collateral At Risk
A recent survey showed that consumers would use personal loans to pay for personal expenses, holiday shopping and to take vacations. Personal loans are becoming increasingly popular because personal loan companies allow consumers to improve their credit histories without having to use personal collateral.