Debt consolidation ‘becoming more difficult’

Securing a good deal on a debt consolidation loan is becoming more difficult for people in the UK, according to one expert.

Anna Sofat from the wealth management company Addidi has asserted that the credit crunch has seen many of the best interest rate offers on debt consolidation loans removed from the market in recent months.

In addition to reluctance of lenders to offer relatively cheap credit, the rises in interest rates in recent years has made it more difficult for consumers to borrow more money in an effort to become debt free.

“Rates might only have crept up a couple of per cent on two years ago but that’s quite a lot and where there’s been a real increase has actually been on mortgages, personal loans and secured loans,” she said.

Earlier this month, Citizens Advice reported that more and more people are approaching its staff for help with mortgage-related debt problems.