'Good deals can still be found on personal loans'
'Good deals can still be found on personal loans'
- Wednesday, 6 October 2010Consumers are being urged to shop around for loans as some good deals can still be found, which may help people avoid
debt problems.
Chris Griffiths, head of personal loans at confused.com, urges consumers to think about the purpose of the loan, how much they need to borrow and how much they can afford to pay each month.
He said: "The term of the loan is also an important factor to consider, as the longer the loan is outstanding the more interest will be accrued.
"Customers should look beyond the headline interest rate and consider how much they can afford to repay each month and stick to their budget."
Furthermore, banks may offer a favourable rate to their current customers or include extra benefits such as travel insurance, he added.
According to Sainsbury's Finance, the average interest rates on a £5,000 personal loan have increased by 16.74 per cent over the last two years.
Therefore, consumers should shop around to find the best deals and ensure they can afford to pay it back otherwise they may get into
debt problems.

Recent Debt Management Plan News
56% of Brits have no life insurance which could leave family with debt problems
Wed, 04 May 2011More than half of UK adults currently have no life insurance cover, which could mean their loved ones are left with
debt problems when they die...
Brits thinking about retirement advised to seek debt advice
Tue, 03 May 2011Consumers considering their retirement options have been advised to seek professional advice, as they may end up with
debt problems in the future...
Brits planning to attend a wedding should start saving to avoid debt problems
Thu, 28 Apr 2011Consumers concerned about getting into
credit card debt to pay to attend a wedding may want to use their savings instead...
Couples planning their big day can avoid debt problems by negotiating a cheap wedding
Wed, 27 Apr 2011Couples-to-be worried about needing
debt advice in the future after paying for a wedding can ensure they avoid accruing
debt problems by negotiating a cheap wedding...