Wednesday 3rd January 2007
Sainsburys Bank has published new figures showing that January is the busiest time of the year for credit card balance transfers and debt consolidation loans.
According to Sainsburys Bank, up to 48 per cent of consumers expect to carry their Christmas spending into February, with credit card balance transfers seen as one way to reduce interest repayments.
Meanwhile, almost half a million shoppers are expected to take advantage of debt consolidation loans between now and March.
Some 433,800 loans totalling £4.8 billion are anticipated to be taken out over the three-month period, according to Sainsburys Bank.
Steven Baillie, loans manager at the bank, said: "Consolidating your debts into one personal loan which charges a lower rate of interest can mean that you could save hundreds of pounds in repayments."
To help its customers to recover from festive spending excesses, Sainsburys Bank is allowing a three-month suspension on repayments for new personal loans taken out in the near future.
Personal loans from the bank are available for amounts up to £25,000, while an independent loan broker is provided for higher levels of borrowing.
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