Loans 'can be a competitive option'

By Sarah Engle, Thu 14 Aug 2008 - Published in Loans

Personal loans can prove more cost-effective than store cards, Alliance & Leicester claims.

A study by the bank has revealed 25 per cent of store card holders in the UK end up paying an average of 26 per cent interest on their purchases.

Alliance & Leicester states this is over three times more expensive than the most competitive low-rate loans.

The group also claims that personal loans can be useful when people want to consolidate their debt.

Mark Boyle, personal loans manager at Alliance & Leicester, said: "For those who wish to make their debt easier to manage, taking out a personal loan and consolidating it into one easy to manage chunk may be a wise option."

He warned that customers who are considering taking out store cards should resist being seduced by what seem like attractive benefits and bonuses.

This comes after Key Retirement Solutions revealed more than one in three people in the UK are looking at starting retirement with outstanding unsecured debt.

News Categories

News Archive

News: Loans 'can be a competitive option'