27 August 2008
Consumers squeezed by the credit crunch are borrowing less on unsecured personal loans, according to new figures from uSwitch.com. The independent price comparison and switching service found that the number of personal loans issued has fallen by 39,338 each quarter over the past year. In monetary terms, this represents a fall in the amount borrowed of £283 per quarter. Simeon Linstead, Head of Personal Finance at uSwitch.com, said: "Our research has confirmed that both mortgage lending and unsecured loans are drying up by the day." He said that as well as a reduction in the amount of credit being issued by lenders, unsecured personal loans have also become more expensive over the last 12 months, which is further restricting borrowers. Indeed, separate research by uSwitch.com revealed that rates on unsecured personal loans have increased by 1.3% in just over a year. However, he added that the market for personal loans is "vast" and consumers can still find competitive deals if they take the time to shop around.
Sometimes a personal loan is a good choice, perhaps you want to consolidate your credit cards or buy a new car. Whatever your needs, let uSwitch.com help you find one to suit. We're impartial and comprehensive and won't charge you for using our service. Compare personal loans and apply online.
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