A&L: People borrow ‘without proper thought’

The bank has found that a number of consumers could benefit from debt advice as 50 per cent of those interviewed said they opted for store cards sue to their convenience when out shopping, despite the high interest rate such cards tend to carry.

While 62 per cent of those quizzed characterised themselves as reluctant borrowers, many still regularly use credit according to the bank, meaning they could perhaps use some debt management tips.

“Anyone who is paying over the odds for large purchases on costly store cards or expensive dealer finance, should look at how much they could save by moving to a low-rate personal loan,” said Richard Al-Dabbagh, Alliance and Leicester senior personal loans manager.

Some 22 per cent of over 55s have opted for forecourt finance to fund the purchase of a car, whereas 32 per cent of women and 25 per cent of men use an overdraft for their credit needs.

The Consumer Credit Counselling Service last week warned consumers about only paying the minimum payment on their credit card statements, branding such behaviour a “mug’s game”.