More than five million people around the UK are convinced that they will never escape their debt management difficulties, according to recent research.
A study commissioned by moneysupermarket.com shows that debt management problems are made worse by consolidation loans for almost two-thirds of people who borrow money for this purpose.
Experts at the financial comparison firm advise credit consumers to avoid spiralling debt problems by not borrowing money simply because of the ease of doing so.
“Forty years ago, being in the red was a last resort. It seems many of today’s Brits are much more accustomed to taking on debt – although being able to control it is quite another thing,” said Tim Moss, head of loans and debt at moneysupermarket.com.
“It is in consumers’ best interests to realise the important implications of taking on debt and only consider a loan for a specific purchase, such as a car or as a last resort to manage their debt.”
Figures from Citizens Advice recently showed that more British consumers entered its bureaux for debt advice in the past 12 months than during any previous year.