Last post: Feb 23, 2018
Fresh research has revealed that many Brits are still living in ignorance of the interest being charged on the loans they are using, with many prioritising acceptance over finding a good deal.
Do you know the interest rate you are paying on the loans you have taken on? If you do, you may be in the minority. Although a good understanding of loan charges and amounts is crucial to guaging affordability, a troublingly high number of unsecured loan customers do not know how much their loan is setting them back in interest.
Older, not wiser
Fresh research from Mintel suggests that around 60% of UK borrowers do not know how much interest their current loans are setting them back. Although you might assume that awareness of interest rates improve amongst older borrowers, this number rises to 74% amongst the 45-64 year old age group.
Younger
borrowers are slightly less likely to use a loan without knowing the
interest rate it carries, however they are worryingly likely to focus
on finding a provider who accepts their application over finding a
good deal and a competitive rate. 54% of 18-44 year olds claimed that
a good interest rate was less important than being accepted for a
loan.
Change still needed
This
is a worrying statistic which suggests that British consumers may not
be taking affordability seriously. It is now the responsibility of
all lenders to ensure that their customers have the capacity to repay
any unsecured loan they take on. This means consumers must have a
good understanding of both the loan product and their own finances.
Blindly accepting any interest rate and using a loan without all the
facts in mind is a sign of irresponsible borrowing.
At Choice Personal Loans we help customers source unsecured loans which fit their lifestyles and budgets, working to ensure successful lending processes when emergency expenses arise. To find a smart fit for you, contact our finance experts today.
Comment