It has been suggested that falling interest rates on personal loans could result in fewer people will be looking for help in the form of debt management advice and plans. There are many people that are struggling with their debt repayments due to the high interest rates that have been seen on loan and credit cards over recent years, and many of these people have sought assistance from debt management companies.

However, one recent report has suggested that the number of enquiries regarding debt management and financial advice could drop if loan interest rates continue to fall, as people will be able to get more affordable finance and are therefore less likely to struggle with repayments in the future.

Over the past couple of years enquiries regarding debt management and advice have soared, as more and more people have found themselves unable to cope with their debt repayments. The rates on personal loans have been rising over recent years, and this has made it difficult for borrowers to keep up with repayment following the financial chaos caused by the global financial crisis and the recession, both of which have left many people struggling to make ends meet financially.

There is speculation over whether loan interest rates will continue to fall, as they have done recently, and many will be hoping that this will be the case. However, some industry officials have warned that the trend could quickly change, and the falling rates on personal loans may not continue as many are hoping.

He said: “The only reason that they might go down would be increased competition but at the moment I can’t see the rates going that much lower. I don’t think the banks are that hungry to lend at the moment to be honest.”