The cost of borrowing money in the UK has been steadily increasing in recent weeks despite the Bank of England’s decision to cut the base rate of interest, it has been claimed.
According to data from MoneyExpert, the typical interest rate on an unsecured personal loan currently stands at around 11.4 per cent, which represents a rise of close to one per cent since the start of this year.
The rising cost of borrowing will make life more difficult for people aiming to become debt free and the price comparison firm suggests that the increases have affected loans of all sizes.
Highlighting why these issues offer cause for concern, Sean Gardener of MoneyExpert commented: “Over 180,000 people consolidate their debts every month, and the vast majority turn to an unsecured personal loan to help them control their finances.”
The Bank of England trimmed its base rate of interest in December 2007 and again in February of this year.