Personal loans taken out for debt consolidation

During the first quarter of this year, Sainsbury's Finance estimates that up to 139,000 personal loans worth as much as £1.55 billion could be taken to consolidate debt.  This is equivalent to around 35% of the value of personal loans taken out during this period.

Sainsbury's Finance, which currently offers one of the most competitive rates of 7.4% APR Typical on personal loans of between £7,500 and £14,999 for Sainsbury's shoppers, says that the first quarter of any year can be a popular time for people to take out loans to consolidate debt.  However, it warns that many people do not shop around properly to find a competitive rate.  Indeed, its research reveals that one in three people who take out a personal loan do not shop around, taking out the first loan they receive a quote for.

Steven Baillie, Head of Loans, Sainsbury's Finance, said: "Taking out a loan to consolidate disparate debts from previous loans or credit cards can save a significant amount of money in terms of monthly outgoings, especially if you have debt with store credit cards which can have extremely high APRs.

"This year, as much as £5.8 billion could be taken out in personal loans for debt consolidation purposes, and given that the difference between a market leading rate like ours and rates available on the high street could be as much as 19% APR, choosing a non-competitive rate could cost you hundreds of pounds in extra interest repayments."  

Sainsbury's Finance is currently offering a rate of 7.4% APR Typical on personal loans between £7,500 and £14,999 for Sainsbury's shoppers. The offer is available to Nectar card holders and includes the added benefit of double Nectar points on shopping and fuel for two years. Those shopping at Sainsbury's with their Nectar card already receive points equivalent to 1% off their shopping. Holding a personal loan between £7,500 and £14,999, one of the supermarket bank's qualifying reward products, doubles this Nectar reward.

A customer with a qualifying Sainsbury's Finance reward product who spends £100 a week in store will therefore receive the equivalent of £52 worth of extra Nectar points a year.

In addition to one of the most competitive rates in the marketplace, customers taking out a Sainsbury's Finance Loan benefit from:

Double Nectar points on your Sainsbury's shopping and petrol for 2 years
A personally tailored repayment period, from 1 to 7 years 
Fixed repayments for the whole period of the loan
An instant decision
Money directly into your bank account

For further information on Sainsbury's Finance Loans, visit sainsburysfinance.co.uk.