Consumers facing higher payments on loan debt
Consumers facing higher payments on loan debt
Monday 30th June 2008
In a study of the secured loans sector conducted by financial information site Moneyfacts.co.uk, the best rate on an unsecured personal loan currently on offer was found to stand at 7.2 per cent.
This compares with a rate of 6.1 per cent 12 months ago for the best value product on the market.
The higher rate means that a borrower with a £10,000 loan over five years would pay back £472 more over the life of term.
Michelle Slade, an analyst with the site, said the trend can be attributed to tough operating conditions for banks and building societies, which have resulted from the credit crunch.
She said: "Just like with mortgages, lenders are struggling to raise funds to lend out to consumers. As a result this increase is being passed on through the APR offered.
"With many lenders offering typical rates or personal pricing, it is likely that many customers are being offered a much higher rate."
Is Debt causing you worry and stress? We can help.
Related News
HSBC fees hitting debt-struck homeowners - 27/06/08
HSBC is hitting debt-hit homeowners with huge arrangement fees for its so-called rescue mortgages
HSBC is hitting debt-hit homeowners with huge arrangement fees for its so-called rescue mortgages
Rise in IVAs recorded as consumers struggle with debt - 26/06/08
Increasing numbers of homeonwers are taking out Individual Voluntary Arrangements (IVAs), in a further sign that problem debt is on the rise
Increasing numbers of homeonwers are taking out Individual Voluntary Arrangements (IVAs), in a further sign that problem debt is on the rise
Energy suppliers urged to help debt-hit consumers - 24/06/08
Energy companies should act to relieve the burden of price hikes on debt-hit Britons, according to a price comparison site
Energy companies should act to relieve the burden of price hikes on debt-hit Britons, according to a price comparison site
Spending-happy Brits adding to credit card debt - 23/06/08
Despite signs of an economic downturn, fears are rising that Britons are piling on credit card debt, with the news that consumer spending rose during May
Despite signs of an economic downturn, fears are rising that Britons are piling on credit card debt, with the news that consumer spending rose during May
Higher energy bills set to squeeze debt-hit households - 20/06/08
Consumers have been warned to expect a 40 per cent hike in gas and electricity costs this year, as increasing living costs continue to put pressure on debt-hit Britons
Consumers have been warned to expect a 40 per cent hike in gas and electricity costs this year, as increasing living costs continue to put pressure on debt-hit Britons
News Article Search
Quick Apply
News Archive