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Unsecured loans continue to grow, study finds

Unsecured loans continue to grow, study finds

Category: Loans

Updated: 04/12/2008
First Published: 03/12/2008

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 It is now over 6 months old so the content may be out of date.

Borrowing through unsecured loans has risen steadily since 2000, research has revealed.

A study by PricewaterhouseCoopers (PwC) showed that there has been a six per cent increase each year, although growth in secured loans has dropped.

The findings form part of the firm's Precious Plastic report into the consumer credit market, which also revealed a doubling in household borrowing.

It has led to 27 per cent of consumers becoming worried about repaying debts in the future, while 20 per cent are concerned about availability of credit.

"Some people are still prepared to borrow despite the tough market conditions, rising unemployment, a depleted housing market and the increasing sense that they will be unable to repay debt in the future," head of consumer finance at PwC Richard Thompson noted.

Credit card companies met with government representatives last week and were urged to lower interest rates in order to provide relief to those struggling with repayments in the economic downturn.

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