18 October 2005
New research has found that by taking credit from a retailer when buying a product people could be losing up to £5,300.
The survey found that retailers' offers, although convenient to take, can leave customers taking loans of up to 15 per cent APR.
However, people still head towards them, as they believe they are either good value, quickest way to get the item or the only way they can afford to make the purchase.
Andy Bayes, of Alliance & Leicester that produced the research, said: "Consumers should think as carefully about how they will pay for significant purchases as they do about choosing the goods. By agreeing to take the retailers' finance deals, consumers could find themselves heavily out of pocket.
"Retailer credit deals can be one of the most expensive ways to borrow money, so they should be treated with caution. I urge consumers to look at all the options when buying large as well as small purchases, and shop around for a better deal than retailer finance provides."
The price taking credit from a retailer on a range of products including double-glazing, a kitchen, a conservatory and a car, was compared with taking a loan and a £5,300 saving was found.
With 50 per cent of people having taken such credit for a major purchase in the past and who may still be tied in the advice is to still shop around and find a loan at a better rate.
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