Consumers should shop around for best deals on loans

An industry official, Darren Cook from the financial company Moneyfacts, has recently urged consumers to ensure that they shop around for the best deals when looking to take out loans, mortgages, and credit cards. According to Cook shopping around for the best deal can save borrowers a small fortune and could minimise the chances of them getting into unmanageable levels of debt.

In the current financial climate it has become increasingly important for consumers to save as much money as possible, and this is where the importance of comparing deals comes in. By shopping around for different deals on loans, mortgages, and credit cards borrowers can ensure that they get the best deal possible, potentially saving a fortune in interest.

One mistake that many people are making at the moment is to assume that because the base interest rate is still at its all time low of 0.5 percent the cost of borrowing must be lower as well. However, this is not the case, and in fact the reduction of the base rate, which has been at 0.5 percent since March of last year, has simply widened the gap between the bank rate and borrowing rates.

Mr Cook said that those that simply went for the first deal that they came across ran the risk of being charged way over the odds on their borrowing, and this could potentially lead to debt problems in the future if they were unable to keep up with repayments.

Cook added: “Don’t take the first deal that is put on the table or the first deal that appears to be put on the table. We encourage you to shop around to make sure that you have a choice that it is a fair price that the market is offering.”