PwC survey claims 4% leap in personal loans in 2013 can be credited to reaction of sudden increase in educational costs limit. A borrowing explosion by students is accountable for the quick boost in unsecured client lending this year, based on an article from the accountancy agency PwC.
The latest student tuition fees that almost trebled to a highest £9,000 last September, triggered a 4% hop in personal loans to £216 bn in 2013. However , in a statement, Precious Plastic 2013, PwC reported the increase covered a fundamental 1% drop in personal loans, headed by a fall in reputation for conventional types of credit such as personal loans, overdrafts and credit cards.
Expectations
The survey alerts that customers continue to be prone to rate increases – a 1% increase in loaning expenses might lead to an extra £550 a year for families to pay. PwC expects personal loans to increase by around 3% a year over the upcoming two years as the healing commences to disperse outside of London and the south east. PwC claimed students who began university in 2012 can anticipate to graduate with £40,000-£50,000 in personal debt and even with the comparatively favorable conditions.
Source: http://www.theguardian.com/money/2013/nov/25/student-borrowing-rise-unsecured-debt