Extra loan repayments ‘could be debt solution’

David Kuo, head of personal finance at website Fool.co.uk, said that for consumers who borrow money, a flexible loan that allows bigger repayments when the borrower is in the position to do so could prevent the need for a debt management plan in the future.

“Whilst many of us may be able to effortlessly service our loans today, any unexpected changes to personal circumstances can quickly send us down a spiral of debt,” Mr Kuo said.

“Consequently, it is a good idea to get a flexible loan and make extra payments when we can afford to do so.”

The personal finance head also suggested that “delaying a purchase” or putting money aside to save for whatever consumers are considering buying can be a wiser move than borrowing the funds or putting them on a credit card.

He added that a personal loan can turn into a “millstone” around the neck, with “drastic measures” sometimes needed to become debt free once again.

The independent website has some two million members, according to Fool.co.uk.