Consolidation "very effective" in reducing debt
Thu 3 Jan 2008 1pm
Taking out a personal
loan for consolidation purposes can be a good way of tackling
debt problems, an expert has stated.
Iain Wrenshall, director of Debt Help UK, said that consolidation
loans can be very useful for people with money difficulties because they provide "financial structure", making a number of different commitments easier to handle.
However, he also warned consumers that borrowing more money to get out of
debt is not always the right option and said that, in some cases, another
loan could be "the financial straw that ultimately breaks the camel's back".
Commenting on the positive side of
debt consolidation, Mr Wrenshall explained: "A consolidation
loan can be very effective, because under the right circumstances it can lower your expenditure and make your borrowings cheaper, making them more affordable."
According to a recent study by
debt counselling service Thomas Charles, 15 per cent of British people are in serious
debt, which is classed as owing £10,000 or more.
