Ditch costly store cards in favour of a competitive low-rate loan

Paying off costly store cards, booking a long-overdue holiday or buying the car of your dreams can now be done in a matter of hours after Alliance & Leicester became the first UK bank to offer same day funds for unsecured loans to both new and existing customers.

It could be the first step on the way to a financially-savvy new year, a fast and cost-effective route to a major purchase, or a way to ease the financial burden of expensive store card debt simply by consolidating it into one manageable monthly payment. New research shows that among many store cards the average APR is 27% - nearly four times the rate a competitive Alliance & Leicester personal loan offers, which has a typical APR of just 6.9% in branches.

From 27 December, customers can have cleared funds in their bank account on the same day they apply for the loan, provided that their application is accepted before 12.30pm on any working day. Applicants simply need to call into one of Alliance & Leicester’s national network of branches to discuss their needs with bank staff and the loan can be arranged from there.

Richard Al-Dabbagh, Personal Loans Manager at Alliance & Leicester, says: “What better way to get your finances sorted out and off to a flying start for the New Year? The fact that the loan takes less time to be paid into your current account means that you can get it working for you even faster.

“And with one of the best rates available on the high street, our personal loans aim to meet the needs and budgets of virtually everyone.”

Samantha Owens, of Moneyfacts, says: " The new year is a great time to remedy any financial hangover you may be suffering from 2007. Store cards are undoubtedly some of the highest rates your will find. If you do find yourself with a debt hanging around your neck, then a personal loan may be a good solution. Rates can be much lower and the regular fixed repayments can work well for the less disciplined of us.

" When refinancing, it’s crucial that you pay off your expensive debt as soon as possible, and perhaps even cut up your cards to reduce temptation."

For anyone interested in bagging a low-rate loan, Alliance & Leicester's website, alliance-leicester.co.uk, provides access to useful tools including a Loan Calculator, which enables people work out how much they can afford to borrow and how long they wish to spread their repayments.