Tax cuts 'will be used to pay off unsecured loans' - Loans - News - Moneyfacts

News

Tax cuts 'will be used to pay off unsecured loans'

Tax cuts 'will be used to pay off unsecured loans'

Category: Loans

Updated: 26/11/2008
First Published: 24/11/2008

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 It is now over 6 months old so the content may be out of date.

Tax cuts expected to be announced in today's pre-Budget report will not boost spending as planned, it has been suggested.

Research by Axa has found that just 22 per cent of people would increase high street spending if taxes are cut by £60 per month.

Chancellor of the exchequer Alistair Darling is expected to announce the move later today in a bid to encourage a revival of the economy.

But the firm has revealed that people will use it in other ways, with a third planning to use it to pay off secured and unsecured loans.

"Worries about the state of the economy and job security in 2009 would lead many Britons to take advantage of a tax cut by shoring up their finances, reducing their debts or increasing savings," said spokesman Steve Folkard.

Last week online education company Whizz.com noted that people are finding themselves in financial difficulty because they do not understand the mathematics of loans and interest.

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 Any products featured may be withdrawn by their provider or changed at any time.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

Regulator to take closer look at high-cost credit

When used well, credit can be a viable way to help make ends meet and balance the books – but the problem comes when that credit is of the high-cost variety. The regulator has will be taking a closer look at the sector to see what else can be done.

The payday loan market is still broken

The payday loan market has been under fire a lot in recent years, and as a result, the financial regulator stepped in. But has it made a difference? Unfortunately, it looks as though there’s still a lot of work to be done.

Get a record low rate loan - if you qualify

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…
 
Close