Debt consolidation loan may be beneficial

THURSDAY, MAY 11, 2006

Britons who are finding themselves in increasingly high amounts of debt are advised to consider acquiring a debt consolidation loan.

With debt solutions firm One Advice revealing that nearly two million people in the UK owe over £10,000 on credit cards, loans and overdrafts, the British Bankers' Association (BBA) has suggested that diverting debts into a single debt consolidation loan may be beneficial.

Debt consolidation loans can help people organise their finances, as they result in having to deal with just one large debt rather than multiple debts.

"It can be a sensible thing to do, to have a consolidation loan," remarked Joanna Elson of the BBA.

"You can put it all in one place and you could get a lower rate. Do this rather than getting further into debt."

However, borrowers in the UK are urged to make sure that they use their loan wisely, rather than simply spending it and remaining in high levels of debt.