Since the start of the recent economic and financial crisis in the Netherlands in 2008, the landscape of debt and credit has been slowly changing. There are more problematic debts and there are also many people who simply cannot pay off their debts, but people have also started to borrow less.

In particular, the revolving credit has become less popular than in the past, according to research by CBS and others. The total outstanding credit from consumers via the revolving credit at the beginning of 2009 was still 13.7 billion USD. In January 2013 this was 12.4 billion USD, a decrease of 1.3 billion USD over four years.

And this decline continued in the first months of 2013, to 11.9 billion USD in outstanding debt via the revolving credit as of October 2013. In the first ten months of 2013, this was half a billion USD less, a decrease of four percent. The number of outstanding contracts continues to decline, as does the total amount of outstanding loans. Figures for the last few years are not yet known, but they will continue to show a downward trend.

Continuous Credit or Personal Loan

Continuous <a href=Credit or Personal Loan” width=”640″ height=”440″ />

Most people have transferred their revolving credit to another form of credit: that of the personal loan. With a personal loan you are often cheaper than with a revolving credit, because the interest is fixed and you have fixed repayment terms. You then know better where you stand and you are less inclined to continue to borrow.

Especially if you have an expensive or a high revolving credit, for example with a credit card, it often pays to transfer this loan to a personal loan, a loan with a fixed repayment time and fixed monthly amounts. The interest is usually lower.

Pay off debts

Pay off debts

Since the credit crisis, things have changed in the field of crediting. People focus on paying off debts rather than entering into new loans. The Moneyview table below shows the development of the total outstanding debt for both the revolving credit and the personal loan.

Below is a graph of the NRC for completeness. This concerns the period from 1970 to 1997. This was during the introduction of the revolving credit as a new loan product. The revolving credit has become very popular since its introduction, and very lucrative for banks. According to Wikipedia , revolving credit is even one of the most rewarding services of banks. For more information, see also the article Meaning of the Continuous Credit.