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Consumers `increasingly experiencing debt problems` Over-50s `better at managing credit card debt` New banking rules `may restrict access to loans` UK `must reduce consumer debt` 700k `on Debt Management Plans` Recession `could lead to financial problems for retirees` Charity sees increase in debt, mortgage and loan arrear enquiries Retirees` finances `may be damaged by rate cut` Consumers `aiming to reduce spending` People `increasingly turning to illegal loans` Children raised in credit crunch `may be better able to manage money` Many parents `pushed into debt by adult children` Young people `failing to protect themselves for debt repayments` Consumers in East Midlands `relying less on debt to fund lives` Plans set out to help people in debt PPI ban `could leave consumers without loan cover` Govt `must step in to stop debt addiction` Cash-strapped Brits `see fraud as more acceptable` People `should not rely on mortgage rescue plan` Consumers `to take out £3bn in debt consolidation loans by Easter`

Debt consolidation `can be a lifeline`

09/05/2007

Taking out a consolidation loan to clear debt can be a "lifeline" if used properly, a financial education website claimed today.

David Kuo, head of personal finance at the Motley Fool`s website Fool.co.uk, said that "it can make sense to roll up several expensive debts into one affordable monthly payment if you are faced with a myriad of claims on your money".

However, he emphasised that consumers should choose debt consolidation loans "carefully", avoiding those which have a penalty for early settlement.

People should also take care not to fall back into risky spending habits once they have paid off their credit cards, he added.

A survey carried out by the site found that three out of five Britons who took out consolidation loans continued to accrue more debts.

The average size of such a loan is £16,459, the study indicated.

In related news, Credit Cards GB recently said that credit card debt management schemes are rising in popularity.

More than 4 million fear they`ll be made redundant 16/12/2010 - According to R3`s quarterly personal debt tracker, more than 4 Consumers took on more mortgage debt in July 26/08/2010 - Consumers took on £2bn more mortgage debt than they repaid Debts called in by parents 26/08/2010 - According to research, `the bank of Mum and Dad` is Teenagers `scared of debt` 19/08/2010 - Nearly two thirds of teenagers are `scared` of debt, according