January is the time of the year when most people take out loans in an attempt to consolidate all of their debts, it has been claimed.
Sainsbury's Finance has estimated that around 25,000 loans, with a combined value of £2.93 billion, could be taken out for debt consolidation purposes in the first quarter of 2009.
The average loans taken out for debt consolidation amounts to around £12,000.
Steven Baillie, head of loans at Sainsbury's, believes that this is a good idea for people who have multiple sources of debt such as credit cards, store cards or historical loans.
He added: "Paying a number of individual rates of interest which could be as high as 30 per cent or more on some store cards for example is not the best way to approach your debt."
In related news, Fairinvestment.co.uk has said that the decision by many banks to stop selling single premium loans insurance is good news for consumers.
Looking for a cheap loan? Fill in our short quote form and compare loans from a panel of lenders. |
0 comments
