Cheap loans may become scarce in the New Year
Cheap loans will become less available to consumers come 2008, as a result of changing economic conditions, suggests a new report.
A spokesperson for one of the UK’s largest credit action groups, has stated that due to the effects of the “so called” credit crunch, fewer lenders will be inclined to offer cheap rate loans in the New Year, as a means to hedge their bets and protect their investments. For consumers who are used to shuffling numerous different credit agreements into more competitively priced products, the news could come as something of a worry.
One expert commented that many thousands of Brits have become accustomed to consolidating their debts at specific times in the year (such as Christmas), as a means to reduce the financial impact of their credit commitments. For such borrowers, a national withdrawal of the availability of said products could push many beyond their budgetary thresholds and into the realms of financial uncertainty.
However, it has further been suggested that although cheap rate credit products are likely to be less available on average, it is possible that their will still be some good deals on offer. Dependant on the individual status of a borrower (in respect to credit history), some lenders will still offer competitive packages albeit more selectively than we have been used to, over the past few months.
