Website warns against finance products

A personal finance website has issued a warning to consumers, urging them to think carefully before using certain financial products during the economic downturn.

Fool.co.uk has complied a list of five finance types that customers should be wary of, stating that they must “stay alert” to avoid getting into further financial problems.

Included in the five are credit card cheques and store cards, the latter of which can charge up to 50 per cent more interest on purchases when compared to credit cards.

Also on the list are payday and logbook loans, with the website also urging customers to avoid individual voluntary arrangement companies.

“It is important consumers read the small print when considering any financial product,” Ed Bowsher of Fool.co.uk explained, advice that those looking to become debt free may wish to follow.

Those looking to control their finances may also wish to check their current overdraft limit, after MoneyExpert.com found that many banks are increasing the charge for those going over their agreed amount.

By Tom Musk