In-store instalment credit increasingly popular with consumers

£249 million was advanced to customers buying items such as furniture, white goods and electronics for their homes. The latest figures from the Finance & Leasing Association also show that the in-store instalment market was up by 21% in the past three months, compared with the same period the previous year.

May also saw increased lending in the second-charge mortgage and consumer car finance sectors (both of which showed double-digit growth rates). Credit cards and personal loans grew by 1% in May compared with May 2011. Store card lending fell by 16% compared with the previous year.

Fiona Hoyle, Head of Consumer Finance at the Finance & Leasing Association, commented: "In-store instalment credit is proving increasingly popular with consumers, who are responding to the attractive and flexible offers which are available. This is helping customers buy essential household goods, at a time when many families have to manage their budgets even more carefully."