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Debt problems force six million to consolidate

Six million UK borrowers have turned to consolidation loans as the solution to their growing debts, according to new research.

The study, conducted by the financial website MoneyExpert.com, found that around one in seven adults have taken up offers of debt consolidation, with unsecured personal loans the most popular route out of financial difficulty.

Furthermore, the average consolidation amount currently stands at £13,000, with six per cent of those consolidating in the past three years borrowing more than £50,000.

Commenting on the findings, the website's chief executive, Sean Gardner, said: "The UK's debt is a serious concern and borrowers are starting to feel the strain."

He added: "Debt consolidation is an entirely sensible and good way to get your finances under control if you owe money to different lenders at varying rates of interest."

Mr Gardner did warn, however, that debt consolidation is only effective if it serves as a wake-up call to borrowers, rather than as a method to keep borrowing and spending.

26/02/2007 15:50:52

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