Get a cheap loan before rates rise
- 1ST MAY 2007
It is unfortunate fact that many individuals are heavily in debt in society today and so more and more people are exploring the option of consolidating debts into a loan. This offers the advantage of one monthly repayment, rather than several, along with a fixed term to clear your debt. Repayments are also cheaper because you would be repaying 6-9% APR with a loan rather then the 12-16% APR typical of a credit card.
Anyone considering the option of a debt consolidation loan should apply as soon as possible because it is predicted that lenders will shortly raise their loan rates to compensate for profits lost as a result of the tightening of payment protection insurance (PPI) selling regulations.
The recent accusations of lenders mis-selling payment protection policies and consequent heavy fines have also served to put consumers off taking out payment protection insurance, thus reducing their associated profits even further. Increasing loan rates appears to be the most logical step lenders can take in order to make up the deficit.
However, consumers still need payment protection insurance in order to fulfil their loan repayments should a borrower ever be unable to work as a result of accident, sickness and redundancy.
You can purchase standalone policies that offer the same protection as those linked to the loan but for a much cheaper monthly premium. The ethical British Insurance offer payment protection insurance that is tailored to individual needs and may effectively prevent you struggling with debt should your circumstances change.
