Personal loans 'are becoming more expensive'

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Personal loans 'are becoming more expensive'

Wed 30th Jan 2008

Borrowers who are thinking of taking out personal loans may want to choose a zero per cent credit card balance transfer offer instead, it has been suggested.

According to everyinvestor.co.uk, people who need £10,000 could end up saving more than £1,000 over the course of four years if they choose to transfer balances rather than take out a loan.

Chris Gilchrist of the website said that the end of such zero per cent rates has been forecast by financial experts "for the past 18 months".

Instead, he says that consumers with a good credit rating should have little problem finding a deal that suits their needs.

"Credit card companies continue to offer lengthy zero per cent balance transfers and even though you may pay balance transfer fees, this still works out well below the interest you would pay with a personal loan," he added.

Recently, David Kuo of Fool.co.uk urged consumers to pay off loans and mortgages as part of an effort to shape up their finances in the new year.

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