Defaulting cheap unsecured loans are still being blamed for many of the problems in the UK housing and loan markets. While there are many cheap unsecured loans that are still in good stead, the ones that are not are dragging down bank profits. This may be a huge problem if more consumers are unable to keep up on their cheap unsecured loan payments. Rising costs of living may make this impossible for many and it may take years before these problems can be solved. Until then, new cheap unsecured loans may be hard to find.
“It [The Bank of England] must reject the idea that it can solve the UK’s debt problem by throwing more money at it. Collectively, consumers are drowning in £1.4 trillion worth of debt, of which £1.2 trillion is mortgage debt and £233 million is unsecured loans. We now need time to pay off those loans, and it will take more than consumers hanging their heads to solve the problem.
“The Government must not use tax payers’ money to lend to taxpayers. This is tantamount to robbing Peter to pay Peter. It is not only nonsense, but dangerous nonsense too,” states David Kuo at Fool.co.uk.
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