Factors such as high rates of interestthe inflation and the possibility of a recession or at least a slowdown in the economywould be affecting household spending patterns and interest in applying to new credits.
These are some of the conclusions of the Consumer Pulse study for the fourth quarter of 2022, prepared by the central TransUnion credit riskwhich showed a lower percentage of consumers who indicated they were planning to apply for new credits or refinance an existing one compared to the previous quarter.
(See: In November 2022, the economy strengthened its deceleration path).
The study says that in addition to concern about inflation 50% of consumers reported the possibility of a recession among their main concerns (compared to 43% in the third quarter) and 46% the rise in prices. interest rates (compared to 44% in the July-September period).
Between October and December 2022, Colombians’ concern about the high cost of living rose from 64% to 74%.
This factor determined that 86% of those consulted have changed their purchasing behaviors, four percentage points more than three months ago, when it was 82%.
From 46% to 42% the percentage of consumers with plans to apply for a new loan or refinance an existing one in the next 12 months.
The study says that the increase in interest is a key factor in this decision since 62% indicated that high rates had an impact significant about your decision to apply or not for a new loan in the next 12 months versus 60% in the third quarter and 58% in the second.
(See: Pessimism and blue birds).
Meanwhile, Millennials and Generation Z are the ones who most intend to apply for a new loan with 47% and 45%, respectively.
According to the TransUnion study, the most pronounced falls in the intention to apply to new loans were observed in loans housing that between the third and fourth quarters fell from 20% to 10%, vehicle credit, whose intention to apply fell from 18% to 14% and credit cards creditwhich dropped from 32% to 27%.
(See: Options to deal with high rates on credit cards).
The percentage of consumers who indicated plans to refinance a credit increased from 19% in the third quarter to 32% in the fourth quarter.
36% of consumers indicated that they had been the object or victim of digital fraud in the last three months, compared to 32% in the third quarter of 2022.
identity theft and seller scams from third parties on sites Web Legitimate online sales scams were the digital scams that increased the most from the previous quarter.
The report notes that the 32% of consumers indicated that he could not afford at least one of his current obligations in fullfour percentage points more than in the third quarter of 2022.
27% expect to pay at least a partial amount, 26% plan to refinance or renegotiate payments or rates.
The percentage of consumers who indicated they did not know how they would pay their current obligations rose to 9%, up from 7% in the third quarter.
(See: This would be household consumption for this 2023 with high inflation).
Another aspect of the study is that 62% of the consumers Discretionary spending (dining out, travel and entertainment) fell in the last three months, compared to 60% in the third quarter and 57% in the second.
Alert with the situation of homes
According to the study, in the fourth quarter, 3 in 10 respondents said their income from their home fell, four points more than in the third quarter.
36% indicated that the situation economic of their home was worse than expected, compared to 28% of the previous quarter.
24% of homes reported an increase in the number of people who lost their jobs in the fourth quarter versus 22% a quarter ago.
others reported have seen their wages and working hours reduced.
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