Consumers benefit from sensible borrowing
Published On 4 January 2007
Consumers will benefit financially from selecting the correct method of borrowing, according to new research.Industry watchdog Which? has stated borrowers could find themselves hundreds of pounds better off if they follow a few tips in the aftermath of the festive overspend.
Among the advice offered by the consumer group is to beware of store card interest rates and always pay back the requested amount in full.
Which? also advises consumers not to be scared of interest-free credit for more expensive items as long as they check the small print of any such deal.
The group also warned that while personal loans have some of the lowest interest rates, they are best used to borrow a large sum of money over a longer period due to higher interest rates for smaller amounts.
Malcolm Coles, Which? editor, commented: "Many of us will have overspent over the festive period, or be planning large purchases in the January sales, so it's a good time to sort out our finances.
"It's really important to shop around to make sure that you get the best deal on credit. For those who already owe money it's very easy to transfer existing card balances to a credit card with a lower interest rate, but consumers should check the terms and look out for transfer fees to make sure that they know how much it will really cost them."
