Cheap personal loans proliferate

Cut rate personal loans have proliferated, but many people are still failing to make a loan comparison and are accepting expensive deals from their banks, claims new research.

There are four times as many cheap personal loan deals available now as there were a year ago, but banks are continuing to charge high rates claims uSwitch.

"The personal loans market is at its most competitive for a long time as lenders continue to piggy-back one another to remain at, or reach, the top of the best-buy tables," said Nick White of uSwitch.

"Northern Rock, AA, cahoot and MoneyBack Bank in particular, have been some of the most consistent players in this competitive arena.

"For anyone considering taking out a personal loan - to consolidate existing expensive debts, to buy a new car or finance a home improvement - now really is a good time to utilise such low rates of interest," he added.

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