Banks’ latest changes- Personal living expenses

Banks’ latest changes- Personal living expenses

Bank’s have recently increased the living costs for an adult and child, which isn’t unreasonable given inflation, but there is more to the story than this. In the past, when you have applied for a loan you have been asked how much you spend every month and in 90%+ of cases people make an educated guess. If this figure lined up with the bank’s default rates, then all good.

However, the banks are taking more of an interest in your spending habits- coffees, takeaways, dining out etc. When you total up the discretionary spending it can be quite frightening! Why are the bank’s doing this? Perhaps rising interest rates, worried about the economic landscape, worried about people’s ability to repay given the size of loans or perhaps they just don’t have as much money to lend and are cherry picking. Anyway, the bottom line is to have a look at your spending and for 3 months before you ask for a loan keep it in check.