Uncompetitive personal loans costing £285m
Published On 29 January 2007
New research suggests that consumers are wasting large amounts of money each year by failing to do their research and taking up uncompetitive loans.Alliance and Leicester Personal Loans claims that consumers in Britain are losing out to the tune of £285 million a year by opting for loans with high rates of interest.
Compared with the company's 5.9 per cent APR loan, consumers could be spending an extra £800 if they choose to go for one of the many loans in excess of ten per cent APR on a £7,500, 60 month loan, the firm states.
"This research shows the staggering amount that people are overpaying for uncompetitive personal loans, and how much the big high street banks rely on borrower apathy and lack of financial understanding," said Richard Al-Dabbagh, the senior personal loans manager at Alliance & Leicester.
Almost one in four people used store cards, which typically charge high levels of interest, to fund their Christmas shopping last year.
