Number of unsecured loans 'increasing sharply' - Loans - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Number of unsecured loans 'increasing sharply'

Number of unsecured loans 'increasing sharply'

Category: Loans

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

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 It is now over 6 months old so the content may be out of date.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 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.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Blue Monday hits nation’s finances

Today has been dubbed Blue Monday – the most depressing day of the year – and considering how many people could be battling with their finances this month, it’s little wonder.

Calls to make the loans market clearer

At first glance the personal loans market may seem simple enough, but get into the nitty gritty and it can be anything but. As a result, some are calling for action to make the market clearer and fairer for all.

Get the cheapest ever personal loan!

Have you woken up with a financial hangover after the festivities? Perhaps you’ve got big plans for the year ahead, or maybe you need a new car? Well, whatever your reasons for needing a loan, you can now snap one up for the cheapest ever rate!