Less consumer credit, more overdrafts

Less consumer credit was granted in the Netherlands in the first half of 2006 than in the same period in 2005. On the other hand consumers did have more overdrafts on their current account. 

Total consumer credit

Outstanding debt decreasing

Consumers took out nearly 4.7 billion euro in consumer credit in the first six months of 2006. This is 7 percent less than in the first six months of 2005, when they borrowed just over 5 billion euro.
In the same period consumers repaid more than they borrowed. This resulted in a total  outstanding debt that was 0.8 billion euro lower at the end of June 2006 than twelve months previously.

Consumer credit by form of credit, first half of 2006

Shift in credit forms

Revolving credit accounted for 2.6 billion euro of the total consumer credit of 4.7 billion euro; 1.5 billion euro was granted in the form of credit card credit and 0.6 billion euro in the form of fixed amount loans. 
The decrease in the total amount of credit granted in the first six months of 2006 is mainly the result of a decrease in revolving credit by 417 million euro. Consumers did borrow more via the other two forms of credit. Compared with the first half of 2005, the amount of fixed amount loans rose by 6.5 percent and the amount of credit via credit cards by 3.2 percent.

Overdrafts on current accounts

More consumer overdrafts

Opposite the decrease in consumer credit, the amount of overdrafts on current accounts did show an increase. While the average amount of overdrafts totalled 7 billion euro in the first half of 2005, twelve months later this was 7.4 billion euro. Added to this, the number of accounts with a debit balance decreased, so the average overdraft per account also rose.

Job Stufkens