Debt Consolidation Recommended For Struggling Borrowers

Tue, 31 May 2011

Britons with unsecured debts have been advised to take out a personal loan or interest-free credit card to consolidate their borrowings.

Price comparison website moneysupermarket.com issued the advice after conducting research which found that a third of UK borrowers have seen their level of personal debt rise over the last year, with one in ten saying it has risen "a lot".

The survey also found that one in seven only make the minimum repayments on their debts each month, with 10 per cent of those saying it’s all they can afford and 4 per cent saying they choose this option so that they have more disposable income available.

Tim Moss, head of loans and debt at moneysupermarket.com, said, "Trimming down household budgets and ensuring they are paying as little as possible for all their financial products can really help to free up some cash to pay down debt, and should be the first port of call for anyone who is struggling."

"If you are in the fortunate position where you are able to consolidate your debt, an interest-free credit card would always be a good solution."

"Alternatively, a personal loan could be an option if you want fixed repayments and to pay down your debt over a set period of time."

According to the moneysupermarket survey, the average UK borrower now owes £8,430, excluding mortgage debt .
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