Consumers that need to get an unsecured personnel loan appear to be learning the lessons from the past few months. Low rate unsecured personal loans are more popular than ever and it appears as though this trend is going to continue.
“It has always been the case that consumers borrowing small amounts of money tend to get stung with high APRs. Over the past 13 months, rates on these tiers have seen the biggest hikes. Overall, we wouldn’t encourage consumers to take out a loan for a small amount such as £1000. There are other forms of credit available such as the 0% Virgin credit card which will allow consumers to borrow £1,000 at 0% APR for a full 15 months,” stated Simeon Linstead of uSwitch.com
Fionnula Earley, an economist with Nationwide stated, “This change in behaviour could be an indication that borrowers are keen to be sure of their outgoings in uncertain times and wish to protect themselves, even though the choice may be more expensive in the long run.”
Emma Thomas, Current Account Product Manager at The Co-operative Bank said: “People are being more conservative in their spending and are finding that cutting back on luxury items can help make a difference.
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