- Thursday, 17 December 2009Borrowers could require
IVA help as they struggle to clear debts exacerbated by the rising cost of personal loans.
According to Money Expert, these consumers have been left to pick up the cost of the Bank of England's decision to lower interest rates to just 0.5 per cent.
Pierre Williams, head of research for the website, said that the move by the Monetary Policy Committee may have been designed to limit the effects of recession on the economy, but it did little to help consumers relying on loans to stay afloat.
He said: "Personal loan rates were as low as five per cent before the financial crisis took hold.
"They have climbed since then and are likely to stay high into next year."
Mr Williams' words come on the back of research by moneysupermarket.com indicating that the typical rate of interest attached to personal loans for £5,000 has risen to 10.78 per cent, more than double what it was before the recession.
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