Fewer personal loan applications, more personal loan defaults 06 August 2008 4:21PM John Kavanagh Databank, Consumer demand for credit flattened in the June 2008 half, according to the latest Veda Advantage consumer credit demand index. Consumers made 3.26 million applications for personal loans and credit cards in the six months to June, an increase of just 0.5 per cent over the June half last year.The Veda index measures the number of credit applications but does not record the dollar value of credit approvals. Veda says this makes it a measure of consumer sentiment rather than a measure of value of the credit market.The big fall was in personal loan applications. Veda said personal loan applications were down 4.3 per cent in the June half compared to the first half last year.Personal loan applications in the June quarter were down 2.7 per cent on figures for the first quarter of the year. Credit card applications were stronger. Inquiries in the June half were up 4.6 per cent over the June half last year - an extra 80,000 applications.Veda said credit cards were associated with the highest number of defaults. In the June quarter the average credit card default was almost $7000. The average personal loan default was $9000.