Vince Cable, the Liberal Democrat Shadow Chancellor has slammed leading high street banks for not lending money. Find out how to borrow money affordably without relying on your bank.
The cost of borrowing money from your bank has increased dramatically in recent years in the wake of the credit crunch. Credit card interest rates stand at a 12 year high, unsecured loans at a 9 year high and the cost of borrowing on agreed overdraft limits has risen 2% in just two years.
Commenting on the announcement of RBS’ losses and the fact that the bank is paying out £1.3 billion in bonuses Vince Cable said that RBS rewarding individual bankers is like a football team paying their striker for scoring when they’ve just been relegated.
“The Government has to get a grip and explain how it will exercise its 84% shareholding in RBS to benefit the taxpayer,” he said. “At present we are seeing very little. Part nationalized banks are for lending, not bonuses.”
If you are in need of borrowing money till payday and your bank is not agreeing to lend you money, either because you have a poor credit history or simply because you are deemed unsuitable to lend to in the current economic climate, if you work, an instant cash payday loan could be a cheaper option for you than being stung by unauthorised overdraft charges by your bank or putting it all on your credit card.