Debt consolidation loan users ’should destroy credit cards’
Britons should cut up their credit cards after obtaining a debt consolidation loan, it has been advised.
Mint Financial Services warns that the temptation to run up new credit card bills should be eliminated if a debt consolidation loan is to benefit the borrower.
Spokesperson Adrian Kidd says: “The main thing I would advise people to do if they are successful in their application for an unsecured consolidation loan is to cut their credit cards up.”
“I can only begin to think about how many holidays are being paid for on credit card,” he adds.
Mr Kidd suggests that Christmas is also a peak time for credit card spending as Britons look to spread the cost of buying presents.
A debt consolidation loan could be one means of unifying a number of different borrowings into a single monthly repayment, as well as potentially saving money if only one form of lending is currently held.
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