The truth about price comparison sites

If you don't already know, a price comparison site is a website that you go onto to compare the cheapest prices on a range of financial products. So if you're in debt and looking for a loan or cheaper credit card they can be useful tools.

It's important that you remember however, that these price comparison websites are businesses. Big businesses in fact when you look at how much money they make each year. Every time you use their site and sign up for a product they get a commission from the company you join.

So for example if you're looking for a new credit card with 0% on balance transfers and you go to a price comparison site and sign up for a new Barclaycard, then they will pay the price comparison site a sum of money. So they're benefitting directly from your debt problems.

However, don't think that price comparison sites are the bad guys. After all, they provide a useful service and can save you a lot of money. But I think it's worth knowing that the price comparison sites you see advertised on the TV aren't debt charities, they're massive companies.

Sometimes you can save even more money by going directly to credit card and loan companies instead of using the middle man. This is a useful tip, especially if you're in debt and counting every single penny.