Secured loans 'may make for a merry Christmas'
25/11/2008Shoppers may be better off funding Christmas with a secured loan rather than a credit card.
Research by moneysupermarket.com has revealed anyone spending the predicted average of £376 over the festive season would be paying off their debt for seven years if they only make the minimum payment every month.
The study also revealed that person could be looking at paying £217 in interest.
Peter Harrison from moneysupermarket.com said shoppers looking at using a credit card over Christmas should try and get hold of one offering a zero per cent rate.
However, this may not be straightforward with the credit crunch in full swing, as companies are more reluctant than they were in the past to lend money.
Alternatively, homeowners may find a secured loan is a better option.
Banks are generally willing to offer competitive rates on this type of borrowing as a person's property will be used as security.
 © Adfero Ltd
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