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


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

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 It is now over 6 months old so the content may be out of date.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 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 Any products featured may be withdrawn by their provider or changed at any time.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

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…

Competition returns to loans, but stalls in cards

Our recent figures reveal a mixed picture in terms of unsecured lending, as while competition appears to have returned to the loans market, it’s notably slowed in the credit card sector.

How to improve your credit score

Are you thinking about applying for credit? If so, you need to make sure your credit score is in order.