4 June 2007
Richard Al-Dabbagh, Alliance & Leicester's Senior Personal Loans Manager, has called on consumers to consider a low-rate personal loan as a realistic alternative to falling victim to the convenience of store cards.
Despite increasing media reports which have found store cards to be one of the main culprits in overcharging consumers, 50% of shoppers opted for them because it was simpler than shopping around for a better credit deal.
Similarly, 42% of car-buyers were prepared to use the forecourt finance offered by the dealer to pay for their new car, rather than looking into alternative means of payment, simply because it was quicker and easier to do.
Though nearly two-thirds of consumers are reluctant borrowers and try to avoid being in debt, high volumes of them are not looking for the cheapest way to obtain credit which, according to Mr Al-Dabbagh, could be a personal loan.
"The research highlights how, despite good intentions, many people don't give careful thought to how they borrow," he said.
"Anyone who is paying over the odds for large purchases on costly store cards or expensive dealer finance, should look at how much they could save by moving to a low-rate personal loan."
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