For anyone aiming to consolidate their debts, choosing the right loan is crucial, analysts at MoneyFacts.co.uk have made clear.
The financial comparison firm is convinced that debt consolidation loans can offer an effective way for indebted consumers to organise their arrears, but warns that some deals are considerably more competitive than others.
Furthermore, the organisation suggests that loyalty to a particular lender does not necessarily guarantee a good deal when it comes to taking on a debt consolidation loan.
“Don’t be fooled into thinking that your existing bank or building society will always give you the best deal, just because you have a relationship with them,” a statement from MoneyFacts.co.uk explained.
“The difference between the best and worst interest rates can be almost double, so choosing the wrong loan provider can be a costly mistake.”
A report from the Financial Services Consumer Panel recently claimed that many people in the UK are resigned to receiving poor advice from professional finance experts.