July 16, 2008
Personal loans restricted and debt costs rise
A Bank of England ( BOE ) report has revealed that the UK’s levels of overdrafts and personal debts have risen from around £161 billion to £177 billion over the last 12 months. The increase has been attributed to the current global credit crisis which has meant that individuals are struggling to meet the cost of living. BOE figures have also shown that current account overdraft rates had risen from 17.4% to 17.9% during the month of June.
It was also found that lenders are restricting the amount of personal loans that are being issued which is adding to the financial pressures that are currently bearing down on individuals and households. Many people are also having to turn to debt agencies for assistance as they find that they are unable to cope.
Additional research by the Office of the National Statistics has uncovered the fact that over 60% of consumers have no idea of what fees they are paying for their overdrafts.