Wednesday, October 27, 2010
Category:
Consolidation
According to moneysupermarket.com, loyalty to your main bank may be more costly than it seems – despite ‘existing customer only’ deals, which are reportedly ‘not always the best available’. Consequently, the comparison site is urging consumers to shop around and check their rates on a regular basis, to ensure that their money is working as hard as possible for them.
It has been pointed out that ‘it’s extremely rare that one provider can offer the most competitive products across all areas’ and that it is therefore essential for consumers to compare their rates against other providers.
Head of banking at moneysupermarket.com, Kevin Mountford, commented: "There is a misconception amongst consumers that they will get preferential deals from their current provider when taking out a new financial product. However, a brief look across the high street banks reveals that it is very much a case of swings and roundabouts, with no single provider offering best buys across the board. Consumers increasingly need to be aware of what is available from other banks and building societies and scour the marketplace to ensure they secure the most competitive products.
"It's understandable that people want to keep their finances simple and the convenience of doing all their banking with one provider is often more important to them than securing the market leading rate for a loan or credit card. For others, they prefer the service provided by their bank but it still amazes me how many people are dissatisfied with their bank, but still remain loyal. Banks rely on this apathy from their customers and during this difficult economic period, consumers need to be generating as much value from their money as possible. We would urge Brits to get online, review their finances and avoid languishing on inferior rates. "
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Homeowners who are finding their finances tight at the moment, perhaps due to multiple credit card bills or loan repayments, could consider taking out a secured loan to tie up any existing debts. One of many finance options available, a secured loan for
consolidation could leave borrowers with just one monthly repayment as opposed to juggling several. What’s more, this single monthly repayment could even be lower than the sum of current outgoings – thus leaving borrowers with more money each month, which could potentially be set aside in a market leading savings account.
