Debt consolidation 'could save money for consumers'

Friday, January 25, 2008

Britons who are struggling to manage their debts may find some respite by consolidating what they own, it has been suggested.

Research from uSwitch.com reveals that 9.5 million consumers have maxed out one of their forms of credit during the past six months.

Responding to these figures, uSwitch.com has advised people to consolidate their debts into a single loan with a favourable rate of interest and make one fixed payment on a monthly basis.

Mike Naylor, personal finance expert at uSwitch.com, commented: "Anyone with multiple debts and a poor credit history could be vulnerable to the impact of the credit crunch and should seriously consider consolidation while the option is still available."

He added that although the base rate reduction could help matters in the future, for some borrowers it has come too late.

A recent survey from Standard Life found that debt consolidation was a more accepted practice by younger borrowers.

Source: http://www.moneynews.co.uk/4039/debt-consolidation-could-save-money-for-consumers-/