Financing study gives insight into personal loan repayment struggles

Thu, 21 Jun 2007

A financing study has indicated that an increasing number of people are missing their personal loan repayments.

According to a survey from financing website MoneyExpert, three per cent of people with loans confessed in 2007 to having failed to make a repayment in the previous six months, up from two per cent in 2006.

Moreover, the financing portal has attempted to highlight the possible scale of the problem nationwide.

By its estimation, approximately 1.39 million personal loan repayments have been skipped in the past six months - equivalent to 7,716 per day.

"This is yet another warning of real financial distress," commented Sean Gardner, chief executive at MoneyExpert.

"The concern has to be that people are missing repayments on unsecured loans because they believe there's not as much at stake as missing a mortgage repayment."

Some personal loan customers may be struggling to make repayments following a recent spate of interest rate hikes.

Since August 2006, the Bank of England's monetary policy committee has elected to raise the base rate by a quarter of a percentage point on four separate occasions.


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