Lazy personal loan seekers lose out, says expert

Fri, 19 May 2006

Consumers who immediately turn to their bank for a personal loan are losing out, says a personal finance expert.

Lazy loan seekers who fail to shop around for the best deals could be causing themselves unnecessary financial problems, burdening themselves with higher interest rates and larger monthly repayments, warns Jill Coyle from Direct Line Loans.

She urges consumers to break their usual financial habits:

"Many customers still go straight to their own bank when they need a loan as it's the way they have always conducted their financial business," she explained.

"We would encourage anyone looking for a loan to check out best buy tables and the internet where they will see the most competitive rates available in the marketplace," she adds.

Arguing that the majority of high street banks don't offer the most competitive rates, she says that heading to a direct lender could be a better option for some borrowers.

Although many consumers might opt for the ease and comfort of dealing with their current bank, direct lenders could offer better value as they are often not incurring as many overheads as their high street counterparts. These expenses can sometimes then be transferred onto the consumer.

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