UK Money News
8th April 2008
Credit cards are now used in place of loans
Credit cards with zero per cent balance transfers are increasingly being seen as a cheaper alternative to personal loans, it has been claimed.
In a study conducted by price comparison site moneysupermarket.com, it was found that around 35 per cent of credit cards are taken out for borrowing rather than for short-term borrowing for purchases.
This phenomenon can be attributed to the introduction of zero per cent balance transfers, which mean that the repayments are considerably cheaper than those that would accrue on a personal loan, according to Steve Willey, head of cards at the site.
He said: "There are still the traditional users who use their cards to make purchases they pay off each month, but for the one in three people using their cards as pseudo loans, most are saving money over traditional personal loans."
To illustrate the savings that can be made the site cited the example of a consumer taking out a £3,500 personal loan at 8.1 per cent over two years and compared the repayments with someone who took advantage of a zero per cent balance transfer with a 2.5 per cent fee in successive years.
It was found that the loan repayments would cost £292 in interest, compared with £130 in fees for the card user.
back to April's Money News
This article and more Latest Money News can be found on MoneyCrocodile.co.uk
Personal Loans from UKPersonalLoans.com
Personal Secured Loans for Homeowners and Personal Tenant Loans for Non-Homeowners. You can apply online for an Any Purpose Loan or Personal Debt Consolidation Loans or use one of our Loan Calculators.
Debt Advice from ReduceDebt.com
Debt problems? Refused a loan? Got CCJ's or Arrears? Get the best advice and help by enquiring online. Our Debt Professionals will help you whatever debt problems you have. Some of the options available to you are Debt Management, Debt Consolidation, Debt Couselling and IVAs,
UK Personal Finance from MoneyCrocodile.co.uk
UK Online Personal Finance site covering: Loans, Mortgages, Credit Cards, Insurance, Debt Advice, Bankings and Savings, Finance Tools and Money Jargon. We also cover Any Purpose Loans, Secured Loans, Personal Loans, Tenant Loans, Car Loans and Debt Consolidation Loans. If you are looking for Personal Finance let Money Crocodile put a smile on your face.
Car Loans from GBCarLoans.com
Don't just accept the dealers finance - get a quote from us before you buy!. UK Car Loans for New Cars or Used Cars: Supermini, Small, Hatchback, Saloon, Estate, MPV, 4x4, Sports, Luxury, Executive, Cabriolet or Classic Car.
Tenant Loans from TenantLoan.com
If you're looking for a low cost tenant loan, then look no further. We aim to find you a highly competitive interest rate and you can borrow anything from £5,000 and £250,000 with up to 25 years to pay.
