New analysis from Sainsbury’s Bank Loans reveals that an estimated 164,000 consumers collectively took out £1.6 billion in personal loans in the first quarter of 2012 in order to consolidate existing debts(1).
Figures from the British Bankers Association suggest that this careful management of debts is having a positive impact. Its figures reveal that consumers made significant headway into reducing their debt in 2012, with overall loans outstanding falling by 12.6%(3).
The supermarket bank’s figures(1) reveal that the average amount borrowed for debt consolidation remains consistent , at around £9,800. Its findings also indicate that, year-on-year there has been a slight increase of around 7,000 people taking out a loan for this purpose. Around a third (35.2%) of the total value of personal loans taken out during the first three months of 2012 was used to consolidate debts compared with 33.6% in 2011(4).
Steven Baillie, Head of Loans at Sainsbury’s Bank, said: “Our findings suggest that people are working hard to pay down their debts and reducing the cost of any debt is one way to make this easier. We’d urge those looking to consolidate debts, either from store cards or credit cards or other loans, to make sure they really shop around for the best loan rate as they could save a great deal.
“The difference in saving between borrowing £10,000 over three years at a market leading rate of 5.1% APR Representative, which is our lowest ever rate, and a mid-market 6.7% could be as much as £246.96 over the lifetime of the loan(5).
“Some providers like ourselves also offer shopper rewards so it’s wise to consider if this is something that you will benefit from.”
Sainsbury’s Bank offers loans between £1,000 and £25,000 to meet a wide range of needs. In addition to competitive rates, customers taking out a Sainsbury’s Bank loan also benefit from:
A personally tailored repayment period, from 1 to 7 years
Fixed repayments for the whole period of the loan
Easy to apply
Money transferred directly into your bank account
For further information on Sainsbury’s Bank Loans call 0800 169 8502, log onto www.sainsburysbank.co.uk or pick up a leaflet in Sainsbury’s.
For further information, please contact:
Tom Wilson, Citigate Dewe Rogerson on 0207 282 2842
Lorna Gilmour, Sainsbury’s Bank on 0131 338 2863
Notes to editors:
(1) Based on analysis of Sainsbury’s Bank loans approved in Q1 2012. Estimates for the whole market made by using this data in conjunction with the bank’s market share.
(2) The MoneySupermarket Supers recognise the banks and building societies that shone in 2012.
The judging process evaluates product range and popularity, appearance in national press best buy tables, terms and conditions, product innovation and customer service. The customer service element on the award is based on a survey completed by MoneySupermarket customers. January 2012.
(3) Sainsbury’s Bank analysis of BBA data –http://www.bba.org.uk – total loans outstanding in Dec 2011 compared with Dec 2012.
(4) Based on analysis of Sainsbury’s Bank loans approved in Q1 2011. Estimates for the whole market made by using this data in conjunction with the bank’s market share.
(5) Calculation based on taking a Sainsbury’s Bank loan – 5.1% Representative rate for £10k at 3 years – compared with a mid market 6.7% Representative rate – Total repayment £11,034 vs £10,787 – lifetime of loan saving of £246.96
To view our latest press releases and product information, please visit the Sainsbury’s Bank online media centre atwww.sainsburysbank.co.uk/media.
Sainsbury’s was the first major British supermarket to open a bank, commencing trading in February 1997. Benefiting from a fantastic, trusted brand that enables us to combine the shopping experience with personal finance, Sainsbury’s Bank provides a range of quality products including insurances, credit cards, savings and loans. Our proposition is to make shopping more rewarding by offering customers great products at fair prices, while consistently rewarding shoppers for their loyalty and being easy to do business with at all times. Our products consistently top Best Buy tables and regularly win awards for quality, price and service.
In 2012, Sainsbury’s Bank was awarded ‘Best Term Assurance Provider Direct’ – Moneyfacts Investment Life & Pensions; ‘Best Personal Loan Provider’ – Consumer Moneyfacts; ‘Best Low Rate Credit Card Provider’ – Moneynet; ‘Best Credit Card for use abroad (Gold)’ – Moneynet; ‘Best Loan Provider’ – Moneysupermarket Supers; ‘Pet Insurance Intelligent Choice, Customer Satisfaction’ – Consumer Intelligence; ‘Best Personal Loan Provider’ – Moneyfacts; ‘Best Direct Personal Loan Provider’ – Your Money Direct; ‘Best Online Pet Insurance Provider’ – Your Money Direct; ‘Best Loans Rate’ – Moneynet.
Sainsbury’s Bank Plc is a joint venture between J.Sainsbury plc and Lloyds Banking Group.
Sainsbury’s Bank has its own banking licence, is separately regulated by the Financial Services Authority and has an independent membership to the Financial Services Compensation Scheme.
Sainsbury’s Bank plc is authorised and regulated by the Financial Services Authority (FSA) register number 184514, except for Credit Cards & Loans where it is licensed by the Office of Fair Trading (OFT) license no. 421 897.
For further information and general Sainsbury’s Bank enquiries customers can call the freephone number on 0500 40 50 60 or visit www.sainsburysbank.co.uk
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