Consumer debt marginally higher

• More overdrafts
• Marginal increase consumer credit
• Consumer shifts to other types of credit

Overdrafts on current accounts rose by 5.5 percent in 2008 relative to 2007. Dutch consumers borrowed 1 percent more in 2008 than in the previous year. Statistics Netherlands calculated that by the end of last year, consumer debt totalled 27 billion euro, i.e. 2.7 percent more than by the end of 2007.

By the end of 2008, Dutch households had an outstanding debt on their current accounts of 9.3 billion euro, half a billion more than twelve months earlier.

Altogether, Dutch consumers borrowed 10.6 billion euro in 2008 (1.2 percent more than in 2007) buy consumer durables like cars, furniture and electronic equipment. The most popular type of credit loan is revolving credit.

Revolving credit accounted for half of total consumer credit granted, but this type of credit appears to be less popular now than it was in the past, whereas fixed credit is gaining popularity. Last year, the demand for fixed credit loans increased by 19 percent. The term fixed credit implies that the consumer borrows a fixed amount and terms, interest rate and redemption period are fixed so that the consumer knows exactly where they stand. With an 8 percent growth, credit card credit also became increasingly popular in 2008.