14 August 2008
Shoppers looking to invest in a new wardrobe or make some home improvements this autumn should ditch the store cards and opt for a low rate personal loan instead, it has been suggested. According to Alliance and Leicester Personal Loans, one in four UK consumers own a store card, despite paying an average of 26% interest on purchases. The temptation to make initial savings and take advantage of what appear to be great deals by signing up for a store card could leave many shoppers paying over the odds, the organisation warns. Mark Boyle, Personal Loans Manager at Alliance & Leicester, said people who have amassed large amounts of debt, through store cards or otherwise, should consider consolidating them with a low rate personal loan, which will make repayments more manageable and less expensive. "With the same day funds option, the loan is paid into your current account within a matter of hours - thus enabling borrowers to use the funds with immediate effect," he remarked. Figures from Credit Action reveal that total UK personal debt stood at £1444 billion at the end of June 2008.