Another personal loan interest rate cut

Tue, 24 Jan 2006

Sainsbury's Bank has followed in the footsteps of a number of personal loan providers and cut the interest rate on its personal loans.

Now offering a typical annual percentage rate (APR) of 6.1 per cent on its personal loans, the bank claims thousands of pounds in excess payments can be saved if people shop around for the best personal loan deals.

The bank says many people want to take out a personal loan in January because they want to consolidate their existing debts.

However, the personal loans provider says instead of simply applying for a personal loan from their current account provider, people should try to find the most competitive deal by shopping around.

"Consolidating your debts with a more competitive loan could save you hundreds or thousands of pounds in interest, so it's important to shop around to find a competitive rate," says Steven Baillie, the loans manager at Sainsbury's Bank.

A quarter of people will be unable to clear their Christmas debt by the end of January, Sainsbury's Bank's research reveals. For some 569,000 it will take more than 12 months to pay off their debt.

Over 500,000 personal loans will be taken out in the first quarter of the year in order to consolidate debts, Sainsbury's Bank says, estimating the value to be more than £5 billion

add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

 

 

Credit Crunch Savers
Amex Cash Back
Credit Card
Get 5% cash back on purchases with Amex
Virgin Credit Card
0% APR on balance transfers for 16 months
Tesco Insurance Sale
50% discount on car and home insurance.
Offer ends 7th Jan 09
Post Office Instant Saver
Protect your savings with the Post Office saver

Paying Too Much?

7 out of 10 people are paying too much for their mortgage. To find out if you're one of them click here or fill out a FREE no obligation enquiry form