November 8, 2008
As Loans Become More Scarce People Turn To Credit Cards
As the number of unsecured loans being made available to consumers withers, many are turning to their credit cards for cash they cannot find elsewhere, uSwitch has claimed.The group state that there are fewer personal loans available now that there has been, as a result of the credit crunch the lenders are less likely to lend. Indeed, it noted that the total borrowing approved on unsecured loan arrangements plummeted by 13 million pounds last month. And with inflation still soaring like an albatross circling overhead as the UKs finances head towards glacial waters, many consumers are looking to plug the gap left by the shrinking personal loans markets by ramping up spending on credit cards. The price comparison site claims that during September, plastic expenditure rose by 130 million pounds.However, uSwitch warned that people may be putting themselves at risk of some heavy financial blows by neglecting to use their credit cards wisely. They claim that interest rates charged by providers for cash withdrawals from credit cards has increased by 41 per cent. The group explained that the average annual percentage repayment for cash withdrawals now stands at 29.97 per cent, meaning that consumers are forking out an additional 161 […]
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