Fool.co.uk: Think hard before taking out a loan

Posted 2008-04-2

The current economic climate means that now is probably not the best time to take out a loan, Fool.co.uk has stated.

According to the head of personal finance at the website, interest rates have increased "across the board" and borrowers of all loans - big or small - can expect to feel the pinch.

"There are no immediate signs of easing in the credit market," asserted David Kuo, head of personal finance at the website.

"Apart from the withdrawal of loan products, average interest rates on personal loans have increased across the board too. This has affected the cost of small, medium and large loans with the cost of smaller loans being disproportionately affected."

He noted that the on average an individual who borrowed £1,000 over the course of three years could expect to pay £80 more on their loan then they would have one year ago.

According to recent research by Moneyfacts, personal rate loans have increased by 1.7 per cent over the past year.

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