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Debt consolidation `could be a sensible option`

08/06/2007

Choosing debt consolidation could be a sensible choice for some people, it has been suggested.

Financial advice website Money Expert claims that debt consolidation could be a workable option for people who owe money at varying rates of interest.

More than six million people in the UK took out consolidation loans in the past three years, according to statistics from Credit Action.

However, Money Expert cautions that such a loan "only works if you accept consolidation as a wake-up call to get your borrowing under control and then work to become debt-free".

"It`s not a licence to borrow more money and get yourself deeper into trouble," it adds.

And Money Expert states that the average size of such a loan is £13,000 - though the amount can sometimes stretch as high as £50,000.

Options for debt consolidation include borrowing money through a credit card, a personal loan, a home loan or by increasing the size of a mortgage.

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