2023
9
UK Consumer Attitudes towards Debt and Credit Market Report 2023
2023-10-05T17:03:07+01:00
REP59507F3F_FE9B_4CA8_AF48_88AE9CFD0868
2195
167114
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Report
en_GB
Consumer lending is set to expand further in 2023, driven by rising use of credit cards and overdrafts as people look to navigate the cost of living crisis. A…

UK Consumer Attitudes towards Debt and Credit Market Report 2023

£ 2,195 (Excl.Tax)

Description

Stay ahead of the curve and future-proof your business with Mintel’s UK Consumer Attitudes Towards Debt and Credit Cards Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest credit card market trends and consumer behaviours affecting your business. 

Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.

Topics Analysed in this Report

  • The impact of the cost of living crisis on consumer borrowing in the credit card market.
  • Size of the secured and unsecured consumer credit markets.
  • How much unsecured debt do consumers hold, and how comfortable they are with their debts.
  • Use of support and advice services for managing debt.
  • Consumer attitudes towards debt and borrowing.

Debt and Credit Card Market Outlook

Consumer lending is on the rise, this is being driven by the increased use of credit cards and overdrafts as the most accessible, convenient forms of revolving credit. Although interest rates continue to rise, many consumers will have no option but to continue expanding their use of credit. Going forward, the main threat to debt and credit card markets is the cost of living crisis being prolonged into 2024 and beyond.

  • Debt and credit card market analysis: Total unsecured consumer lending is set to grow by 10.2% in 2023.

Credit Card Market Trends and Opportunities

Proactive debt support

The longer the cost of living crisis goes on, the more people will need support. As people run out of potential cut backs and interest rates rise, repayments could become more difficult. Currently, the use of debt tools and advice services is extremely fragmented.

  • Debt and credit card market analysis: 16% of people with unsecured credit have used tools and advice services for managing debts in the last year.

Utilise open banking

Financial providers should raise awareness of Open Banking to help consumers manage their finances and find potential savings on credit products. This will ensure banks are the first port of call when it comes to seeking new lines of credit, rather than comparison sites and credit rating companies.

  • Credit card market analysis: 17% of people have been rejected for unsecured credit in the last year.

To learn more about the Credit Card Market, including a five-year forecast, consumer behaviour analysis, and market opportunities recommendations, purchase our full UK Consumer Attitudes Towards Credit Card Market Report. 

Leading Brands in the Debt and Credit Card Market

Clear Score, NatWest, HSBC, First Direct, Zopa, Chase, Monzo, Klarna, Nationwide.

Additional Features Included with Your Purchase

  • Interactive Databook: Each Databook is provided as an interactive website where you can deep dive into our consumer research data on your chosen topic so you can draw your own conclusions.
  • Consumer Confidence Tracker: Our Trackers paint the picture of the economic confidence and major concerns of up to 40 different demographics, tracking changes in attitudes over time.
  • Custom PowerPoints: Incorporate our consumer research data into your own work so you can win over your clients and stakeholders. Select insights from your report to create a custom presentation that is ready to download in minutes.
  • Different Digital Formats: PDF for conveniently sharing with your team, PowerPoint for quickly including in your presentations.
  • Mintel’s Clients Portal: Our portal provides instant access to actionable analysis, podcasts, and trend pieces relevant to your industry that are published almost daily, as well as our annual Global Consumer Trends. You can also browse our extensive catalogue of market research reports.

Expert Insights from a Finance Analyst

This report, written by Adrian Reynolds, a leading finance analyst, delivers in-depth commentary and analysis to highlight trends in the credit card market and add expert context to the numbers.

Consumer lending is set to expand further in 2023, driven by rising use of credit cards and overdrafts as people look to navigate the cost of living crisis.

Adrian Reynolds
Global Analyst

Table of Contents

    • Key issues covered in this Report
  1. Executive Summary

    • Opportunities for the credit market
    • Market dynamics and outlook
    • Graph 1: gross consumer credit lending (excluding student loans), 2018-23
    • Graph 2: Monthly consumer credit net lending (excluding student loans), 2020-23
    • What consumers want and why
    • Graph 3: Types of credit owned, 2023
    • Graph 4: total level of unsecured debt, 2023
    • Graph 5: consumer comfort with levels of unsecured debt, 2023
    • Graph 6: reasons for borrowing money, 2023
    • Graph 7: attitudes towards debt and credit, 2023
    • Innovation and marketing
    • Graph 8: total above-the-line, online display and direct mail advertising expenditure on credit and loan products, 2018-23
  2. Market Dynamics

    • Unsecured debt market
    • Graph 9: gross consumer credit lending (excluding student loans), 2018-23
    • Graph 10: gross credit card lending, 2018-23
    • Graph 11: gross other consumer credit lending (excluding credit cards), 2018-23
    • Graph 12: Monthly consumer credit net lending (excluding student loans), 2020-23
    • Graph 13: outstanding unsecured debts (excluding student loans), 2020-23
    • Secured debt market
    • Graph 14: gross mortgage lending, 2018-23
    • Graph 15: monthly gross mortgage lending, by purpose, 2020-23
    • Cost of debt
    • Graph 16: interest rates on unsecured credit products, 2020-23
    • Graph 17: interest rates for selected types of mortgages, 2020-23
    • Write-offs, bankruptcies and insolvencies
    • Graph 18: value of write-offs to individuals, 2011-22
    • Graph 19: number of individual insolvencies, 2011-22
    • Macro-economic factors
    • Graph 20: CPI and CPIH inflation, 2016-23
    • Graph 21: Bank of England base rate changes, 2017-23
    • Graph 22: the financial wellbeing index, 2016-23
    • Graph 23: the financial confidence index, 2016-23
    • Graph 24: issues affecting consumers in the last two months, 2023
    • Regulatory and legislative changes
  3. What Consumers Want and Why

    • Types of credit held
    • Graph 25: types of credit owned, NET, 2023
    • Graph 26: types of credit owned, 2023
    • Graph 27: consumers with current account overdraft facility debt, 2023
    • Graph 28: consumers with buy now pay later/instant digital credit debt, 2023
    • Graph 29: repertoire of types of credit owned, 2023
    • Value of unsecured credit
    • Graph 30: total level of unsecured debt, 2023
    • Graph 31: total value of unsecured debt, by financial situation, 2023
    • Consumer comfort with debt levels
    • Graph 32: consumer comfort with levels of unsecured debt, by financial situation, 2023
    • Graph 33: consumer comfort with levels of unsecured debt, by gender, 2023
    • Reasons for borrowing money
    • Graph 34: reasons for borrowing money, 2023
    • Graph 35: reasons for borrowing money, by financial situation, 2023
    • Debt tools and advice services
    • Graph 36: use of tools and advice services to manage debts, 2023
    • Graph 37: use of tools and advice services to manage debts, NET, by age, 2023
    • Graph 38: tools and advice services used to manage debts, 2023
    • Attitudes towards debt and credit
    • Graph 39: attitudes towards debt and credit, 2023
    • Graph 40: attitudes towards data sharing and credit products, by age, 2023
    • Graph 41: plans for new lines of credit in the year ahead, by age, 2023
    • Graph 42: moving banks to access better credit options, by age, 2023
    • Graph 43: attitudes towards existing debts, 2023
    • Graph 44: expectations of rising debt levels in the year ahead, by age, 2023
    • Graph 45: attitudes towards revolving credit, 2023
  4. Innovation And Marketing Trends

    • Competitive strategies and launch activity
    • Advertising and marketing activity
    • Graph 46: total above-the-line, online display and direct mail advertising expenditure on credit and loan products, 2018-23
    • Graph 47: top 20 advertisers of above-the-line, online display and direct mail advertising of credit and loan products, 2022/23
  5. Appendix

    • Report scope and definitions
    • Methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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2024 Sample Consumer Cover

Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

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