New personal lending recorded a drop in the latest reference period, but consumer confidence is on the up, according to recent data.
The latest lending indicators released by the Australian Bureau of Statistics (ABS) has shown that new personal loan commitments fell 12.5 per cent in August, with road vehicles driving the decline after three consecutive months of growth.
Meanwhile, according to the Westpac-Melbourne Institute Index of Consumer Sentiment, consumer confidence lifted by 11.9 per cent to 105.0 in October.
Westpac chief economist, Bill Evans, attributed the growing confidence to a few factors, including the ongoing success in containing the COVID-19 outbreak, the October Federal Budget, and the expectation that the Reserve Bank of Australia (RBA) is likely to further cut the cash rate.
Additionally, the survey provided an insight into confidence in the labour market.
With a 14.2 per cent lift in confidence around job security, consumers may feel better placed to work on paying down or consolidating existing debts.
Depending on your personal financial situation, refinancing your personal loan or consolidating your debts could potentially help you save money on interest costs and fees.
It’s important to understand that consolidating your debts with a personal loan still means you are taking on a financial commitment. It’s best to compare all your options before opting for a debt consolidation personal loan. It could be a good idea to speak to a financial adviser for advice specific to your personal situation.
RateCity has put together some of the top-rated personal loans for October 2020 to help start your personal loan comparison.
(Rankings are correct at the time of publishing. Please note lenders may trade places on the list as interest rates and fees change and RateCity’s tracker reflects these movements.)