Yorkshire Bank Points Customers To Personal Loans
23 December 2004
Yorkshire Bank has found that customers who take advantage of too many offers during the sales could be losing out in the long term.
This becomes more problematic with “big-ticket” items such as new kitchens and bathrooms, which many people (23 and 16 per cent respectively) plan to buy, with significant numbers intending to put the cost onto credit or store cards or take out shop finance packages to fund these purchases.
59 per cent of those polled admitted they cannot pay off their store card each month, and the longer they take to pay for their sales bargain the more it costs them.
“If you do not have a budget in mind before hitting the sales then the ‘spend now, worry later’ mentality can prove extremely expensive,” Gary Lumby, Yorkshire Bank’s head of personal financial services, said.
“Store cards can be ideal for shoppers who can meet their monthly bills. However, if you can’t and the high rates of interest start kicking in, they can prove real problems with some shoppers paying far more for products than they originally were before the sales.”
He stressed that for many purchasers a loan is the best and cheapest way to buy expensive items in the sale without causing problems in the future.