Consumer arrears increased slightly in December as holiday spending drove higher borrowing, but the pace of growth has slowed, indicating households are managing debt better.
Credit bureau Centrix reported 470,000 consumers were behind on loan payments, a 1.3% increase from the previous year.
Mortgage arrears rose more sharply, up 7% year-on-year, with those aged 35–49 most affected.
Despite rising arrears, falling interest rates are expected to aid debt control, though they also drive increased credit demand.
Meanwhile, businesses face tougher conditions due to weak demand and tighter tax enforcement, with liquidations up 36% year-on-year, particularly in construction, property, and transport. Experts predict further rate cuts and relaxed lending rules may provide relief in the coming months.
Image credit: Towfiqu Barbhuiya
