‘One in three borrowers consolidating debt’
A third of all loans are now used for consolidating debt accumulated through other sources, it has emerged.
Research conducted by Alliance & Leicester shows consumers are more willing than ever to consolidate their existing debts in order to minimise the amount they have to repay.
High-interest store cards and finance deals are listed by the financial services provider as two of the main sources of borrowing which could be combated with a debt consolidation loan.
Meanwhile, one of the key benefits is said to be the ability to combine all repayments into one single monthly amount.
London and the south-east are the regions especially likely to be consolidating debt, with 36 per cent of all loans in those areas used for the purpose - two per cent above the national average.
The Association of Independent Financial Advisers this week expressed the opinion that advice must remain available to individuals with debt problems and should not become “the preserve of the wealthy”.
However, those aiming at consolidating debt could be relieved to know that advice is available to them.
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