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After months of slowing growth, the Office for National Statistics (ONS) has said that last month the UK economy remained unchanged, the first time the economy has not grown since 1992.

An earlier estimate put growth at a miserly 0.2% but this was revised downwards. Some analysts are now saying that the 0% figure is in fact optimistic and that we are already in recession.

The Eurozone economy is already contracting. Since this is the biggest trading partner of the
UK exports are expected to fall further in the next few months. Meanwhile, the services sector, the backbone of the UK economy, grew just 0.2%, while manufacturing output fell by 0.8%. Household spending dropped by 0.1%.

The figures are likely to raise expectations of a cut in interest rates to prevent a protracted slowdown. However, inflation, which hit 4.4% in July, could make it more difficult for the Bank to cut interest rates to spur the economy. Analysts said the zero growth reading could lead to lower borrowing costs by the end of this year.

There is a major symbolic aspect to the zero growth announcement. The government liked to highlight the unbroken run of growth going back to 1997, when it came to power, and generally ignored the five years before.

But the 16 year run is a record unmatched by any other leading economy. That run has now come to an end and few are predicting when it will pick up again.

Of course, these figures could yet be revised again, perhaps back upwards. But all the signs suggest that economic growth is on a downward path. The third quarter, which we are now in, and the fourth could well turn negative, signifying a technical recession.

Even if flat or slightly positive, this year’s growth will be the weakest since 1992.

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One result of the tightening credit conditions over the past year has been a proliferation of more complicated loan options with a wider variety of packages and repayment options available to consumers. It is a sensible time, therefore, to review the personal loan market.

Firstly, personal loans are available with various lengths of terms and repayment options depending on your personal financial situation, your credit history and the amount of money you wish to borrow. In the UK, borrowers can choose either a secured personal loan or an unsecured personal loan.

Getting a secured personal loan is a straightforward process once you have property you can use as surety against the loan. This means you use your property as collateral and if you default on the loan, the lender can take this property and sell it to redeem the money you borrowed. If you use your home as collateral, you still live there as you normally do and once the loan is paid in full, the lender has no claim on the property whatsoever.

An unsecured personal loan is one in which you do not have to use any of your property as collateral. Getting this type of loan does not take a long period of time because there are no appraisals needed nor are there any legal documents to sign except for the ones from the lender. You don’t need a solicitor for this type of loan.

These loans are the perfect solution for tenants and those who do not own property to obtain a loan for their personal needs. There is a greater risk for the lender in approving unsecured personal loans so the interest rates are therefore higher. If you should default on the loan, the lender has no security to fall back on to redeem the money you borrowed.

Even those with a bad credit history can apply for a personal loan and when you make your payments on time, you can get started on repairing your damaged credit. You will likely have a higher interest rate attached to the loan than a person with excellent credit would, but you can still get either a secured or unsecured personal loan.

If you are looking for such a loan to combine your debts into one lower monthly payment, lenders look kindly on this move and are more than willing to help you.

With the ease of the Internet and many lenders having an online presence, it is easier than ever before to search for an affordable personal loan online. You can do this from the comfort of your home at any time of the day or night. Browsing the various sites and experimenting with the free loan calculators that the lenders have available won’t cost you any money and you don’t have to submit an application to get the information you need. Therefore searching for a loan in this manner will not have any effect on your credit rating.

You have the option of requesting free quotes from several lenders and receiving relies by email, so you won’t have to speak to a loans officer. There are also experienced brokers for personal loans that you can use and they have an online presence as well. This eliminates having to take time off work to visit several lenders for information. A broker offers your loan to multiple lenders and then brings the results back to you. You choose the loan agreement that best suits your needs and then you submit an application.