1 December 2005
Sainsbury's Bank has implored people seeking out a personal loan to compare interest rates carefully, as people often end up paying over the odds needlessly.
It bases its comments on research which suggests that 37.8 per cent of Britons only received one quote when taking out a loan at any point in the last five years.
The bank suggests that £9.4 billion will have been taken out for cars alone between October and next March, and noted that – with 21 per cent happy to use a loan to fund between three quarters and the entire cost of a car, choosing the best deal is extremely important.
Stephen Baillie, loans manager at Sainsbury's Bank, said: "Loans can be a useful way to spread the cost of a major purchase like a car, but millions of people could still be throwing money away by not comparing interest rates when taking out a loan."
Given that an additional 13 per cent of people received no more than two quotes for a loan, the suggestion is that 50 per cent of customers could be paying far more than they need.
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