Debt consolidation is the foremost reason why British consumers take out a loan, one expert has made clear.
A total of more than 40 per cent of people opting to borrow money do so in an effort to reduce their debt management worries, according to Steve Baillie, head of loans at Sainsbury’s Bank.
However, Mr Baillie insists that with debt management problems spiralling out of control for many people around the country, consumers need to consider their options carefully before taking on a loan.
“If you are going down the consolidation route you have to be strict with yourself so that you’re not just deferring the problem for future months and years,” he said.
“Shopping around is the most important thing but it is entirely up to the customer’s own choice.”
Figures released by Credit Action recently show that a total of £214 billion was lent to individuals in the UK during July of this year alone.