Missed Loan Repayments Increasing

by Gill Montia

Story link: Missed Loan Repayments Increasing

MoneyExpert.com, the price comparison website, has issued a report suggesting that each day thousands of loans are going unpaid, as consumers struggle with recent Bank of England interest rate rises.

According to MoneyExpert, over 1.3 million repayments on personal loans have been missed over the last six months. The research points to the situation worsening considerably if there are further interest rate rises, as the level of missed payments in the UK rose from two percent in 2006 to three percent in the first half of 2007.

MoneyExpert.com,’s chief executive, Sean Gardner, believes that many borrowers are now suffering real financial distress but he also has concerns that payments on unsecured loans are being missed because people believe the repercussions will not be as serious as missing a mortgage repayment.

He considers this attitude dangerous, as missing repayments is not a good way to manage finances. A better route would be for people to utilise the wide range of financial products and advice available to help them deal with their debt problems.