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Number of unsecured loans 'increasing sharply'

Number of unsecured loans 'increasing sharply'

Category: Loans

Updated: 31/10/2008
First Published: 20/10/2008

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Consumers have been advised to take control of their finances in order to avoid mounting debt from unsecured loans.

The warning comes as unbiased.co.uk finds that debt levels have risen significantly over the last year.

According to the site's Savings Brake report, Britons borrowed 15p for every pound that they saved in the second quarter of the year, compared to 12p in the same period in 2007.

Chief executive David Elms remarked: "People are currently feeling the pinch - but this will only continue to get worse if they are both increasing the amount they are borrowing and reducing the amount they are saving."

The research showed that £5.9 billion was taken out in unsecured loans, an increase of £757 million compared to a year ago.

Interest rates are set to fall in the near future, as the Bank of England's monetary policy committee announced that the official base rate had been cut by 0.5 per cent this week.

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