Home > News > Debt consolidation

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 loans make "a great deal of sense"

06/11/2007

Taking out a personal loan in order to consolidate debts "makes a great deal of sense" but only if consumers are disciplined, a financial expert has claimed.

Debt consolidation is seen at the "key reason" for consumers to take out a personal loan but they should be aware of the current financial climate before signing up to such an agreement, the senior editor of moneyextra.com stated.

Those taking out loans should fix the interest rate on the deal before taking out the money as well as deciding on a date by which the debt will be cleared off, according to Robin Amlot.

Mr Amlot added: "Using a personal loan in this way as a financial management tool makes a great deal of sense but only if you are then disciplined enough not to run up further debt on your credit card/s and overdraft in addition to the loan you are now paying."

According to figures from Credit Action, the average UK consumer owes £4,544 on personal loans, credit card debt and overdrafts.

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