Consolidating debts can be a positive step for credit consumers finding it difficult to escape their own debt management disasters, one expert has asserted.
Adrian Kidd from Mint Financial Services suggests that debt consolidation can bring piece of mind for those people who might otherwise be facing a prolonged period of paying only the interest on their arrears.
He commented: “At least with a loan you are given the time and you know that within five or seven years it will be gone, whereas just paying the interest every month without clearing the balance is a fairly suffocating process.”
“It’s a good thing to put in all in one lump sum because it protects your credit score as long as you maintain the payment and also allows you to pay off the capital,” he added.
Mr Kidd also suggested that the repayment demands associated with credit card debt tend to be considerably higher than those made by debt consolidation loan providers.
The total amount of personal debt owed by British consumer now stands at more than £1,345 billion, according to figures from Credit Action.