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Sainsbury’s personal loans interest rate cut

Sainsbury’s personal loans interest rates have been cut from 8.9 per cent typical APR to 8.2 per cent APR from today. Sainsbury’s Bank also say they will be offering the 8.2 per cent loan rate to customers applying by phone; previously the offer was only available for internet loan applications only.

This great offer means that Sainsbury’s Bank is now offering one of the lowest loan rates in the UK for loans between £7,000 and £15,000.

Benefits of the Sainsbury’s Bank loan include;

A personally tailored repayment period, from one to seven years Fixed repayments for the whole period of the loanAn instant personal loan decisionThe money in 24 hoursNo set up fees
Steven Baillie, Head of Loans, Sainsbury’s Finance said: “We are committed to providing our customers with great products and are delighted to be able to offer this rate cut at a time when our customers are planning for 2009.”

I think an affordable monthly loan payment is a good way for people to manage any debts they may have on credit or store cards but the key thing is making sure no additional borrowing beyond affordable monthly payments is done.

Something like 60 per cent of people who take out a loan to pay off debts will go on to borrow even more money, usually they take out yet another personal loan. Unfortunately this is how the cycle of borrowing and debt continues until loan repayments are missed.

Make sure you don’t fall into the debt trap - never borrow beyond your means and make sure you meet you’re monthly repayments. Never, ever take out a loan to pay off another loan, unless you seriously consider extending the term of the loan to reduce monthly repayments. And, if you are unsure about what to do then seek professional financial advice…