Sometimes Bigger is Better
When it comes to interest rates and interesting thing is
happening in the United Kingdom – the more you borrow the less
you pay for it. Now this seems like it wouldn’t make any sense –
and it really doesn’t. The banks are appearing to penalize those
that don’t need to borrow as much as they want them to.
In some cases the banks are charging almost double their rates
for those that are looking to take out a loan for less than
those that take out larger amounts. Any one taking out a loan
for less than £7,000 is finding that they are paying 19.3% while
those that take out more are paying 10.3%. This is a significant
difference.
This is really starting to affect the debt consolidation
industry – as they are traditionally those loans of lesser
amounts. The debt consolidation industry is there to help those
people that are currently paying more on their credit card
bills, but if they are paying more on their interest rates than
there is no point in getting one.
They said that they usually encourage those people that are
paying higher rates to get a debt consolidation so that they can
get debt free faster. But if they are under the minimum amount
they may end up paying more for having their debt consolidation
make things easier for them. One expert said that it might
almost be worth taking out a debt consolidation loan for more
than you owe so that you could get the lower rate, then use the
money that you have left over and pay down some of the debt
immediately.
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