Two new reports from independent market analyst Datamonitor reveal that households are having more difficulty coping with their financial commitments, and forecast that the number of people in the UK that are systematically denied credit by mainstream lenders will increase from 7.0 million in 2006 to 8.6 million by 2011.
“2006 saw an increase in the non-standard population for the first time in many years, as the financial difficulties UK consumers are experiencing are gradually feeding through,” says Maya Imberg, Financial Services Analyst at Datamonitor and author of the reports.
Non-standard individuals are those who are systematically rejected from mainstream lenders. Lenders can reject non-standard individuals for a number of reasons, including County Court Judgments (CCJs), unemployment, a personal bankruptcy record or income support among others.
Imberg adds: “While it is important to remain aware of the fact that bad debt indicators remain, for the time being, at low levels, they nevertheless point to consumers struggling in an economic climate that is now tougher than in previous years.”