Website Reports 20 Per Cent Rise In Average Personal Loan Rate In 2008

Mon, 12 Jan 2009

The average personal loan rate has trebled over the past twelve months, according to a new study.

Research carried out by leading financial services website MoneyExpert.com found that the average rate on a £5,000 loan has increased from 10.65 per cent at the start of 2008 to the current 29.40 per cent.

In addition, the number of personal loan deals that come with rates of under ten per cent has dropped from 74 per cent, reported in January 2008, to just 31 per cent.

Sean Gardner, chief executive of the financial website, said: "With unemployment on the up, lenders are increasingly thinking twice before offering money they're much less sure they'll get back."

"The cost of this risk is being passed on to us all with higher APRs and fewer products available," he added.

Meanwhile new figures released by national money education charity Credit Action have revealed that the level of personal debt in the UK increased by some £56bn to £1,456bn in 2008 - representing a rise of £1million every 10 minutes.

The average household debt in the UK, including mortgages now stands at £59,670 (£9,600 excluding home loans ) and the average amount owed by every UK adult is now £30,420.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Credit Crunch Savers
HSA Dental Plan
Get covered from £7.70 per month!
Amex Cash Back
Credit Card
Get 5% cash back on purchases with Amex
Income Protection Insurance
Get an instant quote with the award winning company