'Shop around for the best deal' to avoid debt problems
'Shop around for the best deal' to avoid debt problems
- Friday, 14 May 2010Borrowers who want to avoid further
debt problems should "shop around and get the best deal" on credit cards and personal loans, suggests an expert.
Darren Cook, a spokesperson for Moneyfacts which provides financial information, believes the market is big enough for consumers to be fussy and not settle for the first deal they find.
He said: "Don't take the first deal that is put on the table or the first deal that appears to be put on the table. We encourage you to shop around to make sure that you have a choice that it is a fair price that the market is offering."
Mr Cook added that banks want business but not as desperately as a few years ago so borrowers can afford to look for the best deals.
However he warned that even though the Bank of England's base rate is low, currently standing at 0.5 per cent, interest rates on unsecured loans and credit cards have increased, which could lead to
debt problems.
Due to the current economic situation banks are charging more on lending with the average interest rate on
credit card debt being 18.2 per cent today compared to 16.7 per cent in 2007, according to Defaqto.

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