Edit Content

Personal Loans in the UK | Infographic by LoanTube

Unsecured Personal Loans UK- Infographic

Personal Loans: Borrow Responsibly

What’s it like to repay an unsecured loan?

Unsecured lending has increased by more than 25% since 2013-14, according to the data from UK Finance. The rising cost of living and a nominal increase in pay have led the Brits to borrow money. According to The Money Charity, the average total debt per UK household in January 2019 is £59,409. That means the total net lending to individuals and housing associations rose by £4.2 billion in January 2019.

Though austerity has generated significant visibility over the last several years after the Great Financial Crisis of 2008, unsecured debt in the UK has hit new heights. As per the TUC, the reasons for this are years of wage stagnation and government austerity. Let’s dig deeper and understand the various factors increasing the debt in the UK.

Maximise your options: Compare and apply for loans below with LoanTube

Apply Filters

Loan Amount
Loan Amount - slider
Loan Amount - inputs
£
£
Loan Term
Loan Term - slider
1 Years20 Years
Representative APR
Representative APR - slider
6%1333%
Loan Amount
Loan Amount - slider
£250£100000
Representative APR
Representative APR - slider
6%1333%
Loan Term
Loan Term - slider
1 Years20 Years

Loan Amount

£4000 -

£20000

Norwich Trust

Loan Term

1 -

10 years

4.8/5

4.8/5

Representative APR

31.90%

Minimum Age

21 Years

Minimum Income

£2000 per month

Representative Example: £12,000 over 66 months, 31.9% APR fixed. Monthly payment £358.22 Annual interest rate 28.01% fixed. Interest payable £11,642.52. Total repayable £23,642.52.

4.8/5

4.8/5

Norwich Trust

Loan Amount

£4000 -

£20000

Loan Term

1 -

10 years

Representative APR

31.90%

Minimum Age

21 Years

Minimum Income

£2000 per month

Representative Example: £12,000 over 66 months, 31.9% APR fixed. Monthly payment £358.22 Annual interest rate 28.01% fixed. Interest payable £11,642.52. Total repayable £23,642.52.

Loan Amount

£5000 -

£100000

Evolution Money Loans

Loan Term

1 -

20 years

4.5/5

4.5/5

Representative APR

28.96%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative Example: Loan Amount: £20950.00, Loan Term: 85 Months, Interest Rate: 23.00% PA Variable. Monthly Repayments: £537.44. Total Amount Repayable: £45,682.15. This example includes a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00

4.5/5

4.5/5

Evolution Money Loans

Loan Amount

£5000 -

£100000

Loan Term

1 -

20 years

Representative APR

28.96%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative Example: Loan Amount: £20950.00, Loan Term: 85 Months, Interest Rate: 23.00% PA Variable. Monthly Repayments: £537.44. Total Amount Repayable: £45,682.15. This example includes a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00

Loan Amount

£1000 -

£10000

1Plus1 Guarantor Loans

Loan Term

1 -

5 years

4.4/5

4.4/5

Representative APR

39.90%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative Example: Borrowing £3000 over 36 months with a representative APR of 39.9% (variable),the amount payable would be £134.21 a month,with a total cost of credit of £1831.56 and a total amount payable of £4831.56.

4.4/5

4.4/5

1Plus1 Guarantor Loans

Loan Amount

£1000 -

£10000

Loan Term

1 -

5 years

Representative APR

39.90%

Minimum Age

18 years

Minimum Income

Not mentioned

Representative Example: Borrowing £3000 over 36 months with a representative APR of 39.9% (variable),the amount payable would be £134.21 a month,with a total cost of credit of £1831.56 and a total amount payable of £4831.56.

 

Personal Debt
Personal Debt – in the UK

Between the period of October to December 2018, 371 people a day were declared bankrupt or insolvent. Net lending to individuals and housing associations in the UK grew by £136 million a day in January 2019. The level of unsecured debt as a share of household income reached 30.4%, which is the highest level ever in the United Kingdom.

The rise of the gig economy and zero-hours contract were also significant contributing factors for the UK debt crisis. The household debt has already reached a crisis level, and to a strong economy needs its people to spend their wages and not to rely on loans and credit cards.

Total UK Personal Debt (£bn)
Total UK

With 82,962 issues, debt was the 2nd largest advice category as it represented 21.9% of all issues dealt with in the year to February 2019. The top 3 categories in February 2019 were Council Tax arrears, credit, store and charge cards, and unsecured personal loans.

Coin
How Do Brits Spend

Consumer credit has increased by 6.6% according to the UK Finance. Also, the growth of 7.1% was witnessed in the outstanding levels of credit card borrowing. Being sensible when it comes to spending can help save a lot of money. According to data published by the Office for National Statistics, the total household spend per week is £572.60.

Households spent 40% of average weekly expenditure on transport, fuel and power, housing, recreation and culture in the financial year ending 2018.

CATEGORY SPEND PER WEEK PERCENTAGE OF AMOUNT SPENT
Transport £80.80 14.1%
Housing, Fuel and Power £76.10 13.3%
Other Expenditure Items £76.40 13.3%
Recreation and Culture £74.60 13%
Food & Non-alcoholic Drinks £60.60 10.6%
Restaurants & Hotels £49.60 8.7%
Miscellaneous Goods & Services £43.50 7.6%
Household Goods & Services £40.70 7.1%
Clothing & Footwear £24.30 4.2%
Communication £17.90 3.1%
Alcoholic Drink, Tobacco & Narcotics £12.40 2.2%
Education £8.70 1.6%
Health £6.90 1.2%
Debt bag
Reasons for Debt – the UK Scenario

Debt has been one of the major issues in the UK since the global financial crisis of 2007-08. Paying more than a quarter of income to the creditors since years gave rise to a myriad of problems for the households. However, the decision of the Bank of England to drop interest rates to record lows after 2008 has undoubtedly helped to ease the financial pressures for the majority of the borrowers.

  • Debt
    1st

    Reduced

    income (17%)

    (2017: 13%)

  • Debt
    2nd

    Unemployment

    or redundancy (17%)

    (2017: 19%)

  • Debt
    3rd

    Injury /

    illness (16%)

    (2017: 16%)

The other most common reasons for debt are as follows:
  • 11%
    Lack of Budgeting
  • 2%
    Pregnancy / Childbirth
  • 10%
    Separation /Divorce
  • 2%
    Irregular Income
  • 6%
    Used Credit for Living Expenses
  • 1%
    Caring for Relatives / Friends
  • 5%
    Increased Priority Expenditure
  • 1%
    Change in Employment
  • 4%
    Reduced Benefits
  • 1%
    Failed Business (excluding clients with business debts)
  • 3%
    One-off Expense
  • 1%
    Retirement
  • 3%
    Bereavement
  • 0.3%
    Incapacity / Disability
How to Maintain
credit
Credit Score While Borrowing?

There are several benefits of maintaining a good credit score such as having the benefit of being offered a lower interest rate on the loans that one opts for. A good credit score helps an individual to save money on a wide range of services. LoanTube has listed a few tips to help maintain the credit score to be fit and in shape:

Pay Box

Keep paying bills on time. Any bill, if unpaid, could wind up on your credit report.

creditBox

Refrain from applying for new credit as multiple credit checks also impact the ratings.

know Box

Know your credit report inside out. A single error can lead to a drop in the score.

calculator Box

Manage your debt efficiently and responsibly. Lower the debt, higher is the credit score.

 

Representative 79.5% APR

Warning: Late repayment can cause you serious money problems. For more information, go to moneyhelper.org.uk

Credit subject to status & affordability assessment by Lenders.

LoanTube is a credit broker and not a lender.

Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on any debt secured against it.

Other Resources

Representative APR Example

The rate you are offered will depend on your individual circumstances.

Representative APR Example: On an assumed loan amount of £1,000 over 18 months. Rate of interest 59.97% per annum (fixed). Representative 79.5% APR. Total amount payable £1,554.10 of which £554.10 is interest. 17 equal monthly repayments of £86.09, and the final month’s payment of £90.57.

Some of the offered loans might be classed as High Cost Short Term Loans. APR rate starts from 18.22%. The maximum APR rate is 1721%, but you will get a personalised rate tailored to you. The minimum repayment term is 3 months, the maximum repayment term is 7 years. The minimum loan amount is £250 and the maximum loan amount is £35000.

Warning: Late repayment can cause you serious money problems. For more information, go to moneyhelper.org.uk

Credit subject to status & affordability assessment by Lenders.

LoanTube is a credit broker and not a lender.

Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on any debt secured against it.

Not all borrowers will qualify for a loan. The operator of this website does not engage in any direct consumer lending, we simply provide you a FREE loan brokering service. This means LoanTube does not charge customers a fee for using its introducer services, but it receives a commission from lenders or other brokers if a customer enters into a consumer credit agreement with them following an introduction by LoanTube.

LoanTube Business Model: As part of our business operations, we connect customers with partner lenders to help them find suitable loan options. LoanTube receives a commission from lenders for this service, which may, in some cases, affect the cost of the loan to the customer. However, as a responsible broker, we are committed to identifying the best possible loan options for our customers.

By continuing to use our website, you agree to accept our cookies policy
X
Google