Debt consolidation increasingly popular after Xmas overspend
04/01/2007With only 52 per cent of Brits expecting to clear their Christmas loans.co.uk/debt-calculator.aspx">debts by the end of January, consumers in the UK are set to borrow around £4.8 billion in debt consolidation loans, a new report claims.
The study, from Sainsbury's Bank, says that around 433,800 loans will be taken out for debt consolidation purposes by the end of March 2007 - with an astonishing eight per cent of Brits saying that they still don't expect their debts to be fully cleared by the end of the year.
The bank's loans manager, Steven Baillie, effectively described the economic sense taking out a debt consolidation loan can make for many people with multiple debts.
"Consolidating your debts into one personal loan which charges a lower rate of interest can mean that you could save hundreds of pounds in repayments," the Sainsbury's official said.
Taking out a debt consolidation loan can mean that consumers end up saving around ten per cent on repayments - a reduction of £100 on each £1,000.
 © Adfero Ltd
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