Borrowers 'Could Save Hundreds' On Personal Loan Repayments

Taking the time to review their various financial products could save hundreds of pounds for many Britons.

So claims MoneyExpert, where in research by the firm it was suggested that the typical household could be some 547 pounds better off each year by transferring offers on the 'five financial basics' from expensive ones to the most cost-effective deals. According to the price comparison website such products consist of UK personal loans, credit cards, home and motor insurance and mortgages. The study also showed that more than four-fifths (84 per cent) are paying over the odds for at least one monetary deal.

According to the company consumers could have the most to gain in switching personal loans. By moving to the cheapest loan available, it was reported that borrowers could save 204 pounds a year. Research from the firm also revealed that by shopping around for a good deal, motorists could reduce their car insurance bill by an estimated 158 pounds per annum. Meanwhile, getting a competitively-priced home insurance policy can generate savings of 76 pounds.

In switching to a cheaper personal loan, consumers may discover not only that they are able to make repayments on their borrowing with greater ease but can also meet other demands for payment outlays, such as utility bills, council tax and store cards, more effectively.

Commenting on the figures, Sean Gardner, chief executive of MoneyExpert, said: "With everyone coming under increasing financial pressure from rising bills it makes sense to find every possible way to cut costs. Our analysis shows potential savings of up to 547 pounds are on offer from reviewing basic financial products and that would be a major boost for household budgets."

Mr Gardner also advised that making use of price comparison websites could help Britons to find more cost-effective financial products. He added: "Not everyone will save that much but four out of five of us are overpaying for at least one of the financial basics. Typically, UK consumers are paying out 150 pounds per year more than they need to. I'd urge people to spend just a few minutes online to review their finances."

By taking the time to scour the market for the most competitive financial products, prospective borrowers could find that they are able to secure access to a cheap loan. Earlier this year, research carried out by MoneyExpert indicated that the rates of interest charged on personal loans has increased steadily over the past year due to the impact of the credit crunch seeing lenders implement tougher criteria to loans applicants. However, Mr Gardner stated that as the "unsecured loans market has always been extremely competitive" those looking to borrow should be able to find that there are "some good deals" available. The chief executive stated that although it is often the case that taking out a more expensive loan will cost consumers less when making interest repayments this does not always happen and as such people looking to borrow should research the deals on offer carefully.

Findings from the firm also indicated that in the six-month period ending December 21st 2007, an estimated 926,000 Britons - about one in 50 - were unable to make a payment on a personal loan due to increasing living costs.

Steve Smith writes for 1 stop finance shop where visitors can apply for UK secured loans and also focuses on cheap personal loans and bad credit loans for UK residents. Visit Today: http://www.1stopfinanceshopuk.biz