Borrowers issued warning over personal loans

British consumers looking to borrow money via a personal loan have been warned that they could face added repayment costs by deciding not to agree a deal online.

According to financial comparison firm uSwitch.com, there is a significant discrepancy between the annual percentage rate (APR) offered on personal loans arranged online and those agreed with a high street lender.

In fact, with debt management problems spiralling out of control for many people across the UK, uSwictch.com is convinced that taking on a personal loan offline could mean paying an “uncompetitive” APR.

“As well as comparing both online and offline rates, consumers need to approach providers that operate ‘personal pricing’ with caution,” a statement from uSwitch.com explains.

“As [offline loan] rates aren’t advertised, this means that customers going into a branch cannot expect to see ‘typical’ APR’s advertised and borrowers are given a ‘personal’ rate.”

Millions of Britons have found it more difficult to become debt free in recent months in the wake of five increases in the cost of borrowing since August of last year.

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