Borrowers choosing personal loans over cards

Fixed personal loan balances grew by 7.9 per cent in the 12 months to June, while credit card balances accruing interest grew by 0.12 per cent according to said managing director of the banking industry research group RFi, Alan Shields.

Shields said personal loans suited borrowers who were uncomfortable with revolving credit and wanted a loan that they could pay back over a term.

“We have seen a shift to personal loans over the past 12 months,” said Shields. “We have also seen in our research that net promoter scores for personal loan products are higher than credit cards. A personal loan is a disciplined financial tool that suits the times.”

Source: Banking Day