Debt consolidation loan advice issued

Thu, 09 Oct 2008

Nearly two-thirds of people who take out a debt consolidation loan go on to borrow more while still paying off that debt, new research shows.

The study by Moneysupermarket.com also reveals that 44 per cent of people would consider taking out another debt consolidation loan, meaning it is not always a one-off solution.

According to Tim Moss, head of loans at the price comparison website, the figures are shocking.

He said: " Debt consolidation has its place, being a good way of managing multiple debts by lowering monthly outgoings. But to succeed, those people who consolidate their debts need to be extremely disciplined."

This means that once someone has taken out a debt consolidation loan, they should avoid further borrowing, he added.

Anyone who is having problems with their debt should seek advice, Mr Moss stated.

Recently, a study by uSwitch.com found that interest rates on personal loans have increased by up to nine per cent in the last four weeks.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

 

 

Credit Crunch Savers
Amex Cash Back
Credit Card
Get 5% cash back on purchases with Amex
Virgin Credit Card
0% APR on balance transfers for 16 months
Tesco Insurance Sale
50% discount on car and home insurance.
Offer ends 7th Jan 09
Post Office Instant Saver
Protect your savings with the Post Office saver

Paying Too Much?

7 out of 10 people are paying too much for their mortgage. To find out if you're one of them click here or fill out a FREE no obligation enquiry form