Britons paying too much interest on loans

Online “lending marketplace” Zopa has released a report that claims Britons are paying around £9.3 billion a year in excess interest.

According to the company, the average adult in the UK had £4,611 of unsecured debt at the end of 2006.

This was largely spread across an assortment of credit cards, store cards, personal loans, hire purchase arrangements and bank overdrafts.

After comparing average interest rates offered via the Zopa marketplace to those from more traditional lenders, Zopa estimates that people in the UK are paying £201 each in excess interest.

James Alexander, co-founder and CEO of Zopa thinks “people in this country desperately need to start shopping around for a better deal”.

He added: “One of the best ways for people to take that important first step to getting their debt under control and managed properly is by taking advantage of the best interest rates available.”

In related news, the Bank of England today released its quarterly inflation report, in which it says there is “considerable uncertainty” as to what will happen to the inflation rate in the near future.

If the inflation rate rises again, the Bank may attempt to stifle it by raising interest rates once more.

© Adfero Ltd

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