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Loans advice offered

Personal loans experts have offered advice to consumers regarding the current conditions in the market.

Overall rates of the unsecured loans - in other words, the amount of interest required by lenders - have been on the rise in recent months, the Daily Mail reports.

This is due in part to the credit crunch, which has seen many banks and other financial firms become much more wary about advancing credit to consumers.

According to the newspaper, the average personal loan rate stood at 6.6 per cent last July - and has grown to 7.34 per cent since.

"The bad news is the interest rate on the money markets - where banks lend money to each other - is becoming increasingly expensive," the newspaper adds.

"This means that banks will have to attract money instead from High Street savers. The bait used is high savings account rates, which will continue to rise.

"And these special savings offers will be partly financed by…higher loan rates."

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