London, 15th February, 2007: The unsecured loanshave literally swept the UK credit market and are scoring very high on the popularity charts due to its no security attribute. However, this magnetic attribute is turning out to be very costly, as unsecured deals come with high interest rates.

According to the latest study, the British people are paying too much interest on unsecured deals. One of the prominent financial provider claims that people availing these loans are actually paying billions of pounds in interest rates.

The figures provided by Zopa, a leading financial platform, are very alarming and affirm the above statement. According to their research, the UK people are overpaying £9.3 billion per annum in interest. The study also alleges that at the end of the year 2006, the average consumer had unsecured debts of £4,611 - a combination of store and credit cards bills, overdrafts, personal loans and hire purchase arrangements – and was found to be paying about £201 extra per annum in interest.

The story of personal deals is quite similar. The chief executive, James Alexander said that the level of Britain’s personal debt is "quite astonishing" as most of the banks and credit card providers are charging "outrageous" pay back rates. His advice to loan seekers is to shop around, as they would for any other product, for a personal loan with a competitive interest rate.