Interest rates on loans go up by 3.4%
02/02/09
Recent figures have shown that interest rates on persnal loans have gone up by as much as 3.4% in some cases. According to the new figures, this is as a result of an increase in the number of default payments.
The results have come from MoneyFacts.co.uk and have shown that the interest payments on some loans have gone up to twelve per-cent from just over eight per-cent which means an increase of about £926 on a loan of £5,000.
Michelle Slade, analyst at MoneyFacts commented that, “Rising unemployment and a declining economic outlook have meant the risk of customers defaulting on unsecured lending has increased. As a result, borrowers are paying a significantly increased rate than they were 18 months ago.”
She suggested that people looking to apply for a loan should ask themselves whether they really need it as with interest rates so high at present, it could cost more them more than ever.
