Borrowers paying too much interest
February 14, 2007 by admin
Filed under News, News-Loans
Britons are paying £9.3 billion too much interest through unsecured borrowing, leading to a worsening debt crisis.
That is according to Zopa, a marketplace for people to lend and borrow money from each other, which says that the majority of borrowers are being overcharged.
Zopa reveals that the end of 2006 saw every adult in the UK in debt to the tune of an average £4,611, with the money spread across credit cards, store cards, personal loans and overdrafts.
This is said to include £201, that the firm says is the average amount of interest which borrowers are being overcharged per year.
“The scale of personal debt in the UK is quite astonishing and the extent to which people are being ripped off by their banks, credit card and personal loan companies is simply outrageous,” said James Alexander, chief executive officer of Zopa.
“People in this country desperately need to start shopping around for a better deal. One of the best ways for people to take that important first step to getting their debt under control and managed properly is by taking advantage of the best interest rates available.”
Zopa claims to offer borrowers better deals by cutting out the banks in the whole lending process.
Those of you considering taking out a loan may find that borrowing in this way is attractive, however, the most important thing to do is to shop around for the best deal that suits your needs.
