Debt consolidation loans 'used by 6m'
Published On 27 February 2007
About six million Britons have taken out debt consolidation loans in the past three years, according to new research.A survey from Moneyexpert.com found that increasing numbers of people are taking the "sensible" way of tackling their debts.
Average debt consolidation loans stand at £13,000, states the research, with 360,000 people borrowing more than £50,000.
Chief executive of Moneyexepert.com Sean Gardner commented: "The UK's debt crisis is a serious concern and borrowers are starting to feel the strain.
"Debt consolidation is entirely sensible and a good way to get your finances under control if you owe money to different lenders at varying rates of interest."
The survey also found that money could be saved by borrowing on debt consolidation loans rather than by adding to a mortgage.
It stated that a person borrowing £13,000 over three years would repay £393.99 per month in contrast with a total of £30,860 paid in total by adding the same amount to a mortgage.
The news follows a recent report from The Debt Surveyors, which found that personal debt is increasing at a rate of £1 million every four minutes in the UK.
