Consolidation Loans Can be "very effective"

Tuesday, January 08, 2008

Consolidating debts with a single loan can be an effective method of managing finances, says the director of a website offering debt advice.

Iain Wrenshall, from Debt Help UK, explained that loans can lower monthly outgoings and reduce the interest rates which may be being paid on store and credit cards or previous high-interest loans.

"It can also offer financial structure, allowing people that would otherwise struggle with several different commitments to maintain those commitments with a single, and possibly lower, payment," he explained.

However he warned that those who are in severe financial problems could find that "a consolidation loan might be the financial straw that ultimately breaks the camel's back," although this can be averted with schemes such as a debt management plan.

The Insolvency Service has predicted that 10,000 people are likely to be declared insolvent in 2008 with figures for 2007 likely to be around 110,000.

Source: http://www.startagainfinance.com/news/loans/consolidation_loans/
Consolidation_Loans_Can_Be_very_Effective_18413775.htm