As the credit crunch accelerates, it is estimated that the interest rate on loans will increase, even though interest rates have fallen. The smallest loans have been the worst hit – on average rates of 14.4% have increased to 18.9%.

Banks are now concentrating on getting their money back into the bank and are becoming much more tightfisted when it comes to lending money. It is therefore harder for you to find a lender, and when you do the rate will be higher than a year ago.

Moneysupermarket.com has a loan comparison section allowing you to see the best loans on the market. Consider your own bank for loans - they will be aware of your credit history and your savings, credit and borrowing patterns.