Secured loans for debt 'makes sense for some'
02/04/2008Debt consolidation can be a great idea for consumers looking to get their finances in order - as long as they are sensible about it, one expert has suggested.
According to a spokesman for the Motley Fool, a group which offers independent advice on financial matters through their popular website, tackling outstanding repayments through debt consolidation "makes sense" for those who use it well.
David Kuo, head of personal finance at the group, said recent research revealed four out of ten UK borrowers were taking out loans to repay outstanding debt - resulting in many having a more manageable monthly budget.
"Rolling up several expensive debts into one affordable monthly payment can make sense if you are faced with a myriad of claims on your money," he said.
However, he warned that consumers need to bear in mind that such loans are a long-term solution and should not be used as a way to run up further debt in future.
Some people find that the competitive interest rates offered by secured loans are a more feasible method of consolidating their debt.
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