- Wednesday, 26 August 2009The number of people entering into
individual voluntary agreements (IVAs) could increase as a result of a lessened availability of cheap loans.
According to moneysupermarket.com, the current average loan rate stands at 10.32 per cent - almost ten per cent higher than the Bank of England's base rate.
With financial conditions remaining difficult, people who opt for a loan in order to cope could find themselves struggling with subsequent interest payments.
Pierre Williams, head of research at MoneyExpert.com, said: "Expect to pay a heavy premium in comparison with the 0.5 per cent base rate on any loan you take out. The days of cheap loans are long gone."
"Rates are sky high with many of the banks building in a very healthy margin to insure against defaults, which remain a real possibility with unemployment creeping ever higher."
The Libor rate - the rate at which UK banks lend to one another - stood at 0.71 per cent on August 24th, according to the British Bankers' Association.
Recent IVA News23% of first-time buyers save for five years to raise a depositWed, 04 May 2011
Brits dealing with Finance Management should shop around for car insurance Wed, 04 May 2011
Parents, including those with Finance Management, advised to start saving for children's weddingsTue, 03 May 2011
Newlyweds may be in need of Finance Management plans after overspending on weddingTue, 03 May 2011
Renting rather than buying may be an option for Brits with Finance Management Thu, 28 Apr 2011
Consumers coping with Finance Management may want to shop around for cheap energy tariffsWed, 27 Apr 2011
Increasing number of Brits turning to loans for home improvementsWed, 27 Apr 2011
Brits, including those with Finance Management plans, to spend £267 on Royal Wedding Tue, 26 Apr 2011
Equity release can be used to 'become debt-free'Tue, 26 Apr 2011
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