Lenders upping rates on personal loans has led to repayment levels hitting their highest level for seven years, an analyst has claimed.
Since August 2006 the average rate on a £5,000 loans over a 36-month period has increased from 8.1 per cent to 11 per cent and rates could continue to rise in the future, according to Michelle Slade of personal finance website Moneyfacts.co.uk.
Ms Slade claimed that consumers who do not shop around and go direct to their banks are paying a heavier price.
"Currently on a £5,000 loans there is a difference between the cheapest and most expensive loans of £25.55 per month, which equates to £919.80 more over three years," she said.
The latest economic forecast by the British Chambers of Commerce has predicted that the UK could fall into a recession within the next six to nine months and unemployment may rise to over two million for the first time in more than ten years.
Looking for a cheap loan? Fill in our short quote form and compare loans from a panel of lenders.
 |
0 comments
