Tuesday 28th March 2006
Loans should be considered when making large purchases, according to Alliance and Leicester.
Although many people tend to use their credit cards for items that are more expensive than usual day-to-day purchases, taking out a loan to pay for them could be more financially beneficial than using credit.
Alliance and Leicester has advised that people may be able to find cheaper options if they shop around for loans using comparison sites on the internet and that loans may be one of the lowest cost methods of gaining finance.
A spokesman for Alliance and Leicester said that large purchases are not always "best suited to being put on a credit card".
"Personal loan rates are much more competitive now," the spokesman added.
"When people are making a large purchase like a car, it is extremely difficult to beat a low-rate personal loan."
People confused as to which is the best way to raise personal finance could find online loan and personal budget calculators particularly beneficial.
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