Since the pandemic began, banks have gotten record loan rates and interest rates.

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Since the pandemic began, banks have gotten record loan rates and interest rates.

Borrowers are being hit with the highest overdraft rates and personal loan interest rates since the pandemic began.

Experts fear that lenders will abandon millions of people who are already struggling to make ends meet due to rising household bills, stagnant wage growth, and tax increases.

Banks raised their effective rate on interest-charging overdrafts by 0.27 percentage points to a new high of 20.94 percent in December, according to the Bank of England.

Meanwhile, the interest rate on new personal loans rose to 6.43 percent last month, the highest level since March 2020, from 6.27 percent in November.

According to money.co.uk’s personal finance expert James Andrews, people will start 2022 with twice the debt they had last year.

“This is a problem that does not appear to be going away anytime soon,” he explained.

“The concern is that people who borrow to pay bills now will face even higher bills in the future as more of their income is used to service debt in addition to meeting current expenses.”

According to TSB, over 82 percent of people are struggling to keep up with rising living costs, with a third of them fearing for their financial future.

Inflation and rising bills were the top concerns for more than half of those polled.

“It’s clear that many people are concerned about the impact of rising inflation and higher bills,” said Mark Curran of the bank.

“This is the perfect time to get your finances in order.”

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