Expects suggest that very cheap rate high-value loans as well as 0{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} credit card balance transfers could soon be coming to an end.
Andrew Hagger, an analyst at financial consultancy Moneycomms, said that sub-3{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} interest loans of more than £10,000 were now very rare.
The time period available for repayment on credit card 0{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} balance transfer deals is also being shortened.
Concerns have been raised that an era of cheap loans has led many, particularly young people, to develop a culture whereby they rely too heavily on credit. This can be levelled at all demographics in modern society.
The City regulator, the Financial Conduct Authority, and the Bank of England have expressed worries about young people getting used to credit during a period of low interest rates to pay for basic living costs. This could expose them to financial difficulty when rates rise.
Source BBC Business News