IFSRA: Only half of consumers research best loan deals

Only 50% of Irish consumers shop around for the best loan rate, according to the Irish Financial Services Regulatory Authority.

Many borrowers concentrate on the monthly repayment without looking at the overall cost of credit, when making a loan decision.

Consumer Director, Mary O'Dea, said today: "There are significant savings to be made by taking the time to shop around - our guide illustrates that on a typical €10,000 loan over 5 years, a consumer could save over €1,100 by taking the time to look at the different rates available.

"It is often tempting to take a loan out over a longer term than necessary, as this reduces the monthly repayments, but the longer the term, the more the loan will end up costing you," O'Dea added.

The IFSRA has published a booklet called the 'Independent Consumer Guide to Personal Loans and Credit' to help consumers make accurate and informed comparisons.

It includes a budget planner.

Types of credit covered include overdrafts, credit cards, credit union loans, personal loans, hire purchase loans and credit sales agreements and top-up mortgages.

Each type of loan is considered in relation to the suitability for a particular purpose, typical annual percentage rate (APR), typical loan term, other fees and charges, flexibility and questions to ask.