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Slumping output in the UK manufacturing sector adds more gloom to the already worsening economy. Last month the manufacturing sector suffered its biggest drop in output since records begin in the early 1990s.

George Buckley, one economist at Deutsche Bank in London, said: “Today’s manufacturing data was shockingly weak. The headline, output, new orders, employment and purchases indices all fell to their lowest on record with respondents citing the ongoing turmoil in the housing and credit markets as the reason.”

The Office for National Statistics (ONS) said output in the services sector had not grown in the 3 months leading to July. This was the worst performance in 6 years and the services sector accounts for approximately 70% of the economy. Britain’s construction industry is heading toward a 3-year slump after 13 years of unprecendented growth.

“Today’s data on the UK’s manufacturing and services sectors provided the clearest signal yet that GDP contracted in Q3. In effect, the UK economy may already be in recession,” said Paul Dales of Capital Economics.

The signs of a recession are written all over the walls. City economists met up at the Bank of England to discuss these recent figures and admitted after the meeting the outlook was “grim”. Most expect a rate cut at the next MPC meeting in less than a week.

The possibility of rates dropping to 4% by next summer is very real.

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A personal loan is considered the same thing as an unsecured loan. Lenders simply use the term unsecured to describe this kind of financial product because it allows you to borrow a sum of money without the need of collateral. Unsecured loans are offered to the applicant assuming their financial situation meets all requirements, including income and employment status.

Listed below are several possible reasons one might apply for an unsecured loan:

* Debt consolidation: For example, you may want to take many costly debts, like credit cards, and pool them together into one easy monthly repayment by consolidating your debts with an unsecured consolidation loan. This way you only owe one lender which makes repayments more manageable.

* New car purchase: Paying more in repairs than the value of the car? A car loan can assist you in purchasing that new, or used, vehicle to get you confidently back on the road without the embarassment of that old banger.

* Home repairs: Homeowners also apply for unsecured loans for home improvements because they aren’t interested in using their house as security, such as in a secured loan.

* Education: Personal unsecured loans can assist you during your studies at Uni by helping to buy course and book materials or other needed expenses. Keep in mind, only borrowing what you are able to repay is highly recommended.

Each year personal unsecured loans are issued for many different reasons. Unsecured personal loans are the loan of choice for borrowers who do not want to borrow money against their house or for those who do not actually own a home. A personal loan may be used to reduce smaller debts, to buy something, such as a car, make payments toward another debt which has fallen in arrears or simply be used for almost anything you fancy.

Unsecured personal loans can typically offer credit from as little as £1000 right up to £15,000 or more and let’s not forget, if you borrow more you typically get a lower rate of interest as the repayment term will most likely be set over a long period of time. It’s highly recommended that you try to borrow the absolute least amount as possible and pay back the loan as quickly as you can.

Like credit cards, the cost of your personal unsecured loan is relative to the interest rate the bank might charge on the loan. Most unsecured personal loans usually charge a fixed rate of interest which means that your monthly bill will not go up and down throughout the finance term. Keep in mind, for those unsecured personal loans offering a variable APR, you can expect a potential rise (or fall) in your rate, so it is smart to set aside a certain amount to pay for this possible interest rise within your budget.

Credit checks are also carried out as part of the procedure to determine the persons credit history. A thorough credit check will show the lender if any risk is involved in approving a personal loan in your name. Keep in mind that any credit history check carried out on request by a financial institution will in fact be placed on your credit rating by the credit reference agency and will be present the next time your credit is checked. The credit check procedure is straightforward giving the bank the ability to decide if they’ll lend to the personal loan applicant, assuming their credit check shows no prior credit problems. It is however advisable to only apply to one lender at any one time because multiple credit checks may make you appear financially unstable and go against you during the bank’s assessment when deciding to loan you the money.