An expansion in ‘payday lending’ may be contributing to the recent growth in unsecured credit. But, over time, the cost of servicing a rising stock of high-interest debt will depress consumers’ spending by more than that of mainstream unsecured borrowing. And, even in the short-term, such loans are unlikely to fuel a pick-up in discretionary spending.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services