Oakley Whisker Sunglasses

Durable C-5 alloy is digitally sculptured into the thinnest wire frame ever created by Oakley

With the new year rapidly approaching, those looking to get their finances back under control or fund a major purchase may wish to consider applying for a loan.

Such is the assertion of Alliance & Leicester, which reports that a loan could be the "first step on the way to a financially-savvy new year". Buying a dream car or booking a holiday were also stated as ideal projects which could be funded through a loan.

It was also put forward that borrowers could use a personal loan as a means of debt consolidation, in which they convert the amount of money owed to various creditors and companies through store cards and other forms of borrowing into a single low-rate monthly repayment. Indeed, research from the financial services firm showed that the typical store card charges an annual percentage rate (APR) of some 27 per cent - almost four times higher than some of the cheapest loans available. Meanwhile, high street retailers Dorothy Perkins and New Look have APRs of 29.9 and 28.9 per cent on their cards respectively. Thus, those who are indebted across multiple store cards may well find their capacity to manage their money is squeezed.

Richard Al-Dabbagh, personal loans manager for Alliance & Leicester, claimed that a personal loan offers an ideal way "to get your finances sorted out and off to a flying start for the new year". He also pointed towards the quick loans currently being offered by the financial services firm as a means of providing immediate help with money. He added: "The fact that the loan takes less time to be paid into your current account means that you can get it working for you even faster. And with one of the best rates available on the high street, our personal loans aim to meet the needs and budgets of virtually everyone."

His comments come after the financial service firm revealed that it has become the first British bank to offer personal loans to consumers in which the money can arrive in their account on the same day that they make their application to borrow.

Samantha Owens, spokesperson for Moneyfacts, added: "The new year is a great time to remedy any financial hangover you may be suffering from 2007. Store cards are undoubtedly some of the highest rates your will find. If you do find yourself with a debt hanging around your neck, then a personal loan may be a good solution.

"Rates can be much lower and the regular fixed repayments can work well for the less disciplined of us. When refinancing, it's crucial that you pay off your expensive debt as soon as possible, and perhaps even cut up your cards to reduce temptation."

As a result, those people who are looking to buy a car, holiday or any other type of major financial purchase, may be advised to apply for a loan. In addition, consumers concerned that the numerous demands on their spending, such as utility bills and credit and store cards, will place them under unmanageable strain could discover that taking out a low rate loan allows them to merge all existing debts into a single monthly repayment, leaving them with more disposable income.

Speaking earlier this year, Derek Oakley, insolvency director for Debt Free Direct, claimed that for many people access to loans keeps their lives "going". The director reported that although a minority may struggle to manage such borrowing, the majority of Britons are able to make repayments regularly, with loans often assisting them in achieving financial desires. He added: "It helps them, it allows them to do things they wouldn't otherwise be allowed to do."

Mark Dawson writes for the the Loan Arrangers where you can compare loans and apply online for cheap home loans, and bad credit loans.