Personal Loans Reach a Five Year High

by : Karl Bantleman

The credit crunch has had people and banks alike becoming more careful with their money. Currently banks are no longer offering the rates they may had before the credit crunch but despite this, customers are still turning to the banks for loans.

Consumer loans through personal loans and other forms of finance such as credit cards has soared its highest total for five years. Recent research conducted shows that consumer debt stands at ?2.35 billion and a total of ?350 million is due to outstanding debt on credit cards.

You can still obtain the better deals when you choose secured loans because there is less risk than unsecured loans. The rates on personal loans have risen considerably by 11.4% from just 10.6% in January, this has made obtaining a personal loan has become harder and more importantly those who do manage to get a loan have to pay more back.

Despite the bank of England cutting its rates, banks are not able to pass these on to their customers due to the credit crunch and banks refusing to lend to each to other. All this means finding the best rates is not as easy as it used to be.

Due to the credit crunch many banks want to lend larger amounts to a smaller pool of borrowers but some lenders still offer attractive rates for smaller amounts of money. The important fact to point out to everyone looking for loans is that there are very competitive deals available and spending a bit of time shopping online will enable you to compare the best deals from the UK's leading lenders at the click of a button. Especially for those with good credit, who should not have as many problems gaining a loan as those with a poor credit rating.