Belmont Thornton Logo
PPI Claims - About PPI

PPI Claim News

Loan Protection: Pay off debt rather than save, says expert

UK consumers have been advised to pay off any outstanding debts rather than invest their funds in a savings account, according to an expert.

Ed Bowsher, head of consumer finance at financial advice website, expressed his belief that the current base rate of 0.5 per cent can be good news for those in debt.

"While interest rates are low, more of your repayments will go towards paying off your actual debt rather than on interest charges," he said.

"Then, when interest rates inevitably rise, your outstanding debt will be smaller and the interest rate rise won't be as painful as it might otherwise have been."

A recent report by Equifax revealed that more than a third (36.1 per cent) of consumers who have accessed their credit file have been making the most of low interest rates to pay off more of their debts.

Although Mr Bowsher acknowledged that this is a good move, he maintained that consumers shouldn't stop saving completely as it is "useful to have a small amount of money you can access easily if things go wrong".

Posted by Amir Hussain

Amir specialises in personal loans, consumer debt and debt management ADNFCR-2776-ID-800302260-ADNFCR

Bookmark and Share
Tell a Friend
blog comments powered by Disqus

Enquiry Form

First Name 
Last Name 
Mobile Phone
Home Phone
Address Line 1 
Post Code 
Claim Back Mis-Sold PPI Button

Belmont Thornton Limited is regulated by the Claims Management Regulator in respect of regulated claims management activities; our registration is recorded on the website number 18273

Belmont Thornton Limited is incorporated in England and Wales, Company number 6621233, whose head office at Unit B11, Kestrel Court, Harbour Road, Portishead, Bristol, BS20 7AN and registered office at Harwood House, 43 Harwood Road, London, SW6 4QP.

Belmont Thornton Limited is registered with the Information Commissioners Office. Registration number Z1728023.

Please note that calls may be monitored for the purposes of staff training.

* Belmont Thornton operates on a "No Win No Fee" basis. This means that there are no upfront costs to pay. Our fee only becomes payable on a successful outcome of a claim. A cancellation fee is payable if you decide that having instructed Belmont Thornton to act on your behalf, and after 14 days of signing your Letter of Authority, you do not wish to continue pursuing your claim with us. The cancellation fee is the reasonable costs incurred for the work undertaken. Please see our terms of engagement.

By using our web-site, you agree that we can place the types of cookies described in our privacy policy on your device.Hide