Caution Urged
The Age
Monday December 27, 1993
Credit unions are warning consumers to treat with caution bank offers to consolidate personal loans into their home loans.
Credit Union Services Corporation (Aust) Limited is concerned that some customers may end up taking 25 years to pay off relatively small loans such as car loans.
`The latest fad to hit the retail banking market may be a mixed blessing for consumers' says CUSCAL's chief executive, Dr Vern Harvey.
While the interest rates are low, ther are hidden costs.Customers should inquire what their total interest bill will be.
`There is simply no point in paying all that interest on a car loan over a period of up to 25 years, if the car needs to be replaced in three to five years time,' says Dr Harvey.
© 1993 The Age
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