Personal loan rates have, depressingly for some, reached a new low as repayment rates hit its highest figure for seven years.

The figures released by Moneyfacts.co.uk revealed that a standard loan repayment could cost you dear in the future. A £5000 loan for instance now has an interest repayment over three years of 7.6%, compared 5.6% in 2006.

Michelle Slade, analyst at Moneyfacts.co.uk, said: "In the last few years the market for personal loans has been extremely competitive as lenders and borrowers alike cashed in on the availability of cheap credit. Increased competition pushed prices down and lenders continually undercut each other in order to top best buy tables."

Ms Slade continued; ''There are no real sign that conditions were going to get better in the loan market in the near future. This is extremely bad news for consumers who may be considering consolidating existing debts to try to drive down their monthly expenditure."