Concerns are mounting that UK borrowers could be paying too much on their personal loans as a direct result of failing to compare loans and ascertain the best rate.
Research carried out by Alliance and Leicester reveals that up to £285 million a year could be wasted on personal loans as borrowers fail to seek out the best annual percentage rates.
Subsequently, experts urge borrowers to make the effort to find the best personal loan deals in order to prevent losing out in the long run.
“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,” stated Richard Al-Dabbagh of Alliance and Leicester.
“With many more people starting to feel the pinch and tighten their belts, a good first step is to look around for a good personal loan.”
Sainsbury’s Bank reports that some 433,800 personal loans will be taken out in the first three months of the year at a total cost of some £4.8 billion.
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