Finance news from Loans Park

London (loans-park) July 7, 2006: As has been told by Bank of England, unsecured lending to individuals has increased in May. It is the second consecutive month that unsecured lending continued to rise. Increment in unsecured lending in May is said to be above the last six month average.

Though consumer borrowing was slow at the beginning of 2006, it boosted up later due to the World Cup, said by Howard Archer, chief UK and European economist for Global Insight. He also mentioned that sales of television and other World Cup related merchandise is the cause behind the borrowing being up.

However, he opined that the tendency to buy more durables was temporary; consumers’ long-term financial capability remained a matter of anxiety. Slow earning growth, soaring utility bills, higher tax burden, rising debt levels, pension problems, inadequate employment were all main barrier for the consumers to attain financial stability.