Credit and debt news
Consolidation 'right for some'
9 January, 2008
Anyone who has spent too much over the Christmas period may wish to consider a consolidation loan.
Iain Wrenshall, director of Debt Help UK, said that such loans could, in the right circumstances, "lower your expenditure and make your borrowings cheaper, making them more affordable".
However, he warned that "it isn't necessarily a good idea to borrow money to get out of debt", saying that a consolidation loan may get some people in to even deeper trouble, proving to be "the financial straw that broke the camel's back".
He added that such a loan was "acceptable" for those seeking to consolidate expensive credit card bills or loans to get a better rate.
Research from uSwtich.com suggested that UK consumers could save a total of £15 billion in interest by consolidating unsecured debt in to one personal loan.
The same research revealed that UK consumers are paying £93 billion in interest on loans, credit card, overdrafts and mortgages.
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