The number of people seeking to take out debt consolidation loans as a way of reducing their outstanding debts could be set to increase as the recession ends, it has been suggested.
According to Champion Finance, debt consolidation loans have been less in demand due to the downturn, despite the fact that secured lenders are still offering good rates for homeowners – due to unstable employment conditions and press coverage of the economic climate.
The demand for these loans looks set to rise now that economic recovery is looking more likely which in turn, Champion Finance says, will help as responsible lending and borrowing play an important part in a healthy economy.
Prior to the credit crunch, debt consolidation was popular among homeowners as it had a low rate of interest and could be obtained from as little as 5.9 per cent APR.
Champion Finance has been operating for 24 years, arranging competitive loans with interest rates from 7.9 per cent APR.
By Sarah Adie