Alliance & Leicester has become the first UK bank to offer same day funds for unsecured loans to both new and existing customers.

Paying off costly store cards, booking a long-overdue holiday or buying the car of your dreams can now be done in a matter of hours. It could be the first step on the way to a financially-savvy new year, a fast and cost-effective route to a major purchase, or a way to ease the financial burden of store-card debt simply by consolidating it into one manageable monthly payment.

Research shows that among many store cards the average APR is 27% – nearly 4 times the rate a competitive Alliance & Leicester personal loan offers, which has a typical APR of just 6.9% in branches.

From 27 December, customers can have cleared funds in their bank account on the same day they apply for the loan, provided that their application is accepted before 12.30pm on any working day.

Richard Al-Dabbagh, personal loans manager at Alliance & Leicester, said: “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.

Samantha Owens, spokesperson for Moneyfacts, said: “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.”