Save £1,100 with a debt consolidation loan
Monday, 05 December 2005 12:00
Consumers can save £1,100 in interest payments by consolidating their store card and other debts into a single unsecured loan, Alliance & Leicester calculates.
The bank points out that by taking debts of £1,000 on three different store cards, and £4,000 outstanding from a car finance deal, and putting it all on a low-rate loan Britons can make huge savings.
"With many millions of pounds spent on the high street in the run-up to Christmas, shoppers will need to look at their finances and consider the different ways they can save money," said Claire Alvey, Alliance & Leicester personal loans manager.
"Debt consolidation is a sensible way of borrowing for anyone who has debt spread across more expensive store cards, credit cards or point-of-sale finance deals."
But Alliance & Leicester research shows that while almost one person in three (29 per cent) expects to borrow money this Christmas, just half (56 per cent) intend to review their finances.
As few as seven per cent of those with outstanding debts are looking at a debt consolidation loan, the bank finds.
And 12 per cent of those set against consolidating debt think it can offer a "bad deal" for the consumer, Alliance & Leicester finds.
But Ms Alvey pointed out: "Debt consolidation with a low rate loan can save consumers hundreds, if not thousands of pounds, but it can also offer people a disciplined and cheaper method of paying back their debt."
She added: "And even those who have just one outstanding loan or finance agreement can easily switch to a low-rate personal loan, and potentially make a huge savings."
To compare some of the cheapest personal loan deals around, go to www.myfinances.co.uk/loans.htm
To compare some of the cheapest personal loan deals around, go to www.myfinances.co.uk/loans.htm
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