Interest on loans increases massively
22/12/08
The APR borrowers will be paying back on personal loans has increased significantly since the beginning of the year. In January borrowers could expect to pay an APR of around 10.65% and currently the figure is looking more like 29.4%, an increase of almost three times according to MoneyExpert.com.
High interest loans have seen a growth in the loan market especially since January 2008. As the economy weakens, consumers are struggling to make ends meet so are having to resort to taking out loans which carry high APRs which are aimed especially for those with poor credit.
“December is normally a time to give, not it seems if you're a loan provider however. 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,” commented Chief Executive, Sean Gardener of MoneyExpert.com.
