Borrowers urged to ‘switch mid-term’

British borrowers have been urged to switch their loan providers half way through a particular deal if more competitive alternatives are available.

According to uSwitch.com, failing to change loan providers when better deals are available costs people aiming to become debt free a collective total of close to £1.25 billion.

With so many people struggle with debt management problems and personal finance pressures increasing, the price comparison firm has insisted that “every penny counts”.

Mike Naylor, personal finance expert at uSwitch.com, commented: “In such a volatile unsecured personal loan market, five years is a long time to sick with the same provider as rates fluctuate constantly.”

Earlier this week, David Kuo, head of personal finance at Fool.co.uk, advised consumers in the UK to be selfish in their efforts to avoid the impact of an economic slowdown this year.