Consumers paying too much for personal loans

It is some what due to the cutting back of sales of payment protection insurance that has led to rises in lending rates, due to lenders raising money to get the books to balance.

The base rate has been at 0.5 per cent since the start of the first quarter and recent research shows that to borrow £5,000 or less can cost up to 10 per cent in interest.

Loan rates are continuing to go up which leaves consumers paying too much for personal loans.

The interest rates for loans was down slightly in August, but lenders would have to reduce them much further if they were going to get more customers.