5 December 2005
Research from Alliance and Leicester has indicated that surprisingly few Britons are looking at debt consolidation loans as a means of condensing all of their monies owed into one.
The bank found that only 56 per cent intend to review their finances ahead of Christmas, while only one in seven of those with outstanding debts is looking at a consolidation loan.
Such loans constitute a single, unsecured rounding-up of debt which may be spread across other deals such as store cards, credit cards and other finance deals - and, despite the apparent public apathy towards the value on offer, the bank's personal loans manager Claire Alvey pointed out the many positives.
She said: "Debt consolidation is a sensible way of borrowing for anyone who has debt spread across more expensive store cards, credit cards or point-of-sale finance deals."
"[It] can save consumers hundreds, if not thousands of pounds, but it can also offer people a disciplined and cheaper method of paying back their debt. And even those who have just one outstanding loan or finance agreement can easily switch to a low-rate personal loan, and potentially make a huge savings."
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