Personal loan uptake rises in May, figures show

New figures released by the Australian Bureau of Statistics have shown that uptake of personal loans increased in May.

The number of people signing up for a loan during the month rose by 0.4 per cent in seasonally-adjusted terms, the Australian Associated Press reports.

A total of $7.348 billion has now been issued to Aussies, which is up from $7.315 billion in April.

This is an encouraging statistic, as it suggests that people are starting to become more confident with their financial situation.

Since the global economic downturn in 2008-09, a lot of households have been reluctant to take on more debt because of fears over their job security.

Competition in the personal loan market is intense and this is likely to continue with the likes of Virgin Money planning to enter the field.

This is great news for people who are looking to compare the best loan deals, as providers will be inclined to offer more attractive packages in order to garner a greater share of the market.

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