Compare loans, Brits told

04/06/2007

Many Britons are failing to compare loans before signing up for credit, meaning they may be missing out on the best rate of a loan or credit card.

Research by Alliance & Leicester found that convenience frequently wins over value, with 50 per cent of Britons taking out store cards and 42 per cent signing up for car finance on the forecourt without stopping to compare loans.

Only 12 per cent tried to save money by comparing loans, the research showed.

Commenting on the trend, Alliance & Leicester senior personal loans manager Richard Al-Dabbagh said many Britons fail to give "careful thought" to the ways in which they borrow.

"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," he added.

Figures released by Alliance & Leicester in January suggested that failure to compare loans could cost British consumers in the region of £285 million.

Source :
MoneyExpert.com