With Christmas fast approaching and the cost of every day living ever rising, many are finding that their savings are hastily disappearing. With this in mind many people are turning to a personal loan this Christmas to help see them through.

However, when coming to apply for a personal loan many customers are having a huge shock as in the last few months we have seen the cost of personal loans soar with interest rates as high as 36.9%.

This sharp increase will add hundreds of pounds to many people’s monthly repayments and it just goes to show how much the credit crunch is actually affecting us. The high interest rates for personal loans can only be blamed on the recent state of the economy which has also seen the cost of fixed-rate mortgages and credit cards increase.

According to research, one of the leading lenders has increased their personal loan rates by 9 points this month alone. With a change in the percentage as much as this, customers who were borrowing £2000 can see an increase in their monthly repayments as much as £225 extra. Other leading banks and lenders have also started to follow suit and increase the cost of their personal loans.

With rates changing every day it is hard to say who is actually offering the best deal. With things currently the way they are, the best way to find the right deal for your situation these days is to compare as many different loans from as many different lenders as possible. There are many comparison websites on the internet now that will allow you to do this, and most of these websites will give you the exact same results as you would if you spent more time going to each individual provider for quotes.