Save thousands by consolidating debts

New lower loan rate of 5.9% APR Representative

21 December 2012

On Friday 21 December, Nationwide Building Society is reducing the rate on its personal loan to 5.9% APR Representative.

The new rate is available to main Nationwide FlexAccount and FlexDirect current account¹ customers borrowing between £7,500 and £14,999², for loans of up to five years. Those who do not have a Nationwide current account will still be able to take advantage of a very competitive rate of 6.2% APR Representative.

At the start of the New Year many people make resolutions to sort out their finances. By using a Nationwide personal loan to consolidate debt, customers could reduce their monthly outgoings and potentially save thousands of pounds.

Customers with £7,500 on a credit card charging the average interest rate of 19.3% APR* could save £3,062 in interest and repay the debt a year earlier if they consolidated the debt to a Nationwide personal loan at 5.9% APR representative.

APR

Monthly Repayment

Interest on a debt of £7,500

Total repayable
(Time to repay debt)

Nationwide personal loan

5.9%

£144.11

£1,146.60

£8,646.60
(5 years)

Average credit card

19.3%

£144.11

£4,208.89

£11,708.90
(6 years)

Difference

£3,062.30

Paul Wootton, Nationwide’s head of personal loans, commented: "For many people, January is often a quiet time of year and that provides them with the perfect opportunity to sort their finances.

"With living costs rising many people are seeing their finances stretched and are looking for ways to reduce their outgoings.

"A debt consolidation loan can not only potentially reduce people’s outgoings, but reduce the total amount of interest they pay and help clear their debt sooner.

"The Nationwide personal loan offers one of the most competitive rates on the high street and is certainly one to consider."

Notes to editors:
¹ To qualify for the Nationwide personal loan rate of 5.9% APR representative you must either:
A) Hold a FlexAccount with a Visa debit card (not cash card or cash card+) and:

  • Have been paying in £750+ a month (excluding internal transfers) for the last 3 months; or
  • Complete an account transfer to us (from a non-Nationwide account) using our Account Transfer Service or have done so in the last 4 months. For the personal loan offer the account transfer must be requested via branch or telephone and the account must be eligible for an overdraft.

B) Hold a FlexDirect account.
If a joint application is made only the first named account holder must meet the main current account customer eligibility criteria.
² For loans outside this range, personalised rates apply.

³ Minimum payment of 3%, min £3

* Average credit card APR and interest calculation sourced from Moneyfacts.co.uk – 11 December 2012

Nationwide Building Society

Representative Example:

5.9% APR Representative (fixed). Based on an assumed loan amount of £7,500over 60 months at an interest rate of 5.9% p.a. (fixed). Monthly repayment £144.11. Total amount payable £8,646.60.

Personal loans are available to customers aged 18-79 and are subject to status. Rates may vary from time to time and without notice. You should consider all borrowing options carefully and seek independent advice.
Nationwide subscribes to the Lending Code.

About Nationwide

Nationwide is the world's largest building society as well as the second largest savings provider and a top-three provider of mortgages in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. Nationwide has around 15 million customers.

Customers can manage their finances in a branch, on the telephone, internet and post. The Society has around 16,000 employees. Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.

Please note: If you are a customer looking for information on our products and services, please visit the main website.