Unsecured Personal Loans UK
Why it's time to replace your credit cards with a loan
Instead of unsecured personal loans UK consumers tend to borrow on credit cards, running up a massive £11.56 billion in credit card debt during November 2003. Recent interest rate rises have made cards more expensive, and more rate rises are on their way.
Rather than borrow with unsecured personal loans UK customers seem to prefer credit cards: in November we spent a massive £11.56 billion using cards. Because interest rate rises are on their way, it's a very good idea to replace your cards with unsecured personal loans.
When it comes to unsecured personal loans UK lenders offer interest rates that are much lower than even the cheapest credit card. At the time of writing it's possible to borrow money for as little as 6.0%, fixed for the life of the loan. When you consider that some credit cards charge interest in excess of 15% APR, it's clear that loans are cheaper – and if interest rates rise in 2004, which the experts say is definitely going to happen, then the difference between loans and credit cards will become even greater.
It’s clear that with unsecured personal loans UK customers can slash the amount of interest they pay on their debts, but today's ultra-low loan rates can't last forever. If you’re worried by the prospect of a rate rise, the sooner you cut up your cards and replace them with a loan the happier you're likely to be.
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