Nationwide offers personal loan rate of 7.6% APR

With effect from Tuesday 5 January 2010, Nationwide will be introducing a new personal loan rate of 7.6% APR typical for loans of between £7,500 and £14,999 for up to five years for its main FlexAccount customers.

This is the lowest rate in the UK and the same low rate applies whether the loan is taken out through a branch, over the telephone or via the Internet.

Nationwide's market leading personal loan rate could be a welcome boost for those wishing to consolidate their debts, as debt consolidation typically sees a rise in the post-Christmas period.  For example, in January 2009 alone, almost 60% of all loans issued were for debt consolidation purposes.  On top of this, January-March 2009 saw more than 115,000 additional debt queries - an increase of over 25% - than the previous three months.

If a customer takes out a personal loan to consolidate existing credit card debt, they may be able to reduce their monthly outgoings and save interest.  With economic conditions still difficult, debt consolidation could be considered as a potential way to reduce monthly outgoings as well as reducing the overall amount of interest payable.

Richard Napier, Nationwide's head of credit cards and personal loans, said: "Our new market leading personal loan rate represents a great start to the New Year for those looking for a cheap personal loan deal.

"For those who may have spent too much over the Christmas period and have several outstanding debts, a personal loan at a highly competitive rate may be the best solution.  A personal loan could help reduce monthly outgoings into one manageable debt with fixed monthly repayments, helping people make the most of their hard earned money.

"This also shows the benefits of our FlexAccount, as no lender on the high street, Internet or supermarket can beat our rate."

For more information, visit nationwide.co.uk.