Spotlight On: M&S Bank loans

The deal

M&S has cut its personal loan rate to 5.5 per cent from 5.8 per cent, its lowest-ever rate.

Good points

If you qualify, it's a reasonably inexpensive way to borrow – cheaper than putting Christmas on plastic, for instance.

Bad points

You must be at least 30 and a homeowner to apply. Even then only the best customers will get the headline rate – others will be offered a deal at a higher rate.

Conclusion

There will be many more loan deals announced in the run-up to Christmas as lenders look to encourage people to spend on the festive period. A far better idea may be to only spend what you can afford, so you're not still paying for this Christmas for years to come. Almost half of those who borrowed last year are still paying for it.