When times are hard put up your APR !

Defaqto research has found that the APR on a £5,000 loan increased from 9.8% to 13.9% between March 2008 and this month, raising the cost of borrowing by 42%. The study, conducted on behalf of The Independent, also found that the average APR on credit cards has reached a 12-year high of 18.8%. Meanwhile, figures from the BBA show that its members cut their exposure to personal loans by £15bn