23 December 2005
Consumers in the UK could save over £1,000 in interest premiums by consolidating existing debts into one central loan, according to research by Alliance & Leicester.
As an example, the bank pointed out that by taking debts of £1,000 from three different credit cards and £4,000 outstanding from a car finance deal and consolidating them in one low-rate loan the typical customer could look to pocket £1,100.
Alliance & Leicester announced the benefits of debt consolidation after finding that while one in three UK consumers plans to borrow money this Christmas only half of those asked had considered reviewing their finances.
Claire Alvey, personal loans manager at Alliance & Leicester, said: "Debt consolidation with a low rate loan 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."
She added: "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."
She emphasised that in all a consolidation could make 2006 more financially comfortable.
Compare all UK personal loans at uSwitch.com and find the one to suit your needs.