October 6, 2008

Default Rates on Cards, Loans and Mortgages Increasing

With food prices soaring, the spiraling upwards of gas and electricity bills, fuel prices being ridiculously high and more and more redundancies occuring, it is hardly surprising that more and more consumers are defaulting on their credit commitments.

According to the Bank of England’s latest credit conditions survey, the increase in default rates on personal loans and other unsecured credit was higher than anticipated in the third quarter of the year. Lenders, who at the same time are tightening the supply of personal loans to households and small businesses, said they expect defaults to continue rising over the next three months. The data shows that the proportion of applications for personal loans and credit cards being approved by lenders also declined in the third quarter as lending criteria were tightened.

If you are looking to take out a loan, make sure that you know exactly what you’re getting into, and what exactly it is that you are getting. Brokers now charge fees so shop around as you may get a better deal. Compare loans with and without Payment Protection Insurance and read helpful information that will guide you through every step of your application. Applying is quick, easy and free – compare personal loans now.