- Tuesday, 15 December 2009Individuals looking to clear debt should be aware that the cost of personal loans has increased over the course of this year.
According to moneysupermarket.com, the current average of top ten loans in the £5,000 bracket stands at 10.78 percent, which is a 1.54 per cent increase on January's average.
With this in mind, consumers may wish to opt for free individual voluntary arrangement (
IVA) advice if they are unable to cope with the increase.
The price comparison website also discovered a "stark inconsistency" between personal loans' supply and demand. Increasing numbers of people are looking for a loan in order to avoid debt, but fewer are securing one.
Head of loans and debt at moneysupermarket.com Tim Moss said that, while the recession is beginning to ease, the same cannot be said of the personal loans market.
"We have seen the banks go from choosy to almost locking down completely," he explained.
"By restricting loans to existing customers only, banks are able to manage their lending more cautiously."
Last week, moneysupermarket.com issued a mixed response to chancellor Alistair Darling's pre-Budget report.
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