The amount of people turning to personal loans as a means to consolidating their debts is on the rise, new figures show.
According to Sainsbury's Finance, around 139,000 personal loans will be taken out during the first three months of this year in order to play down debts.
This equates to around 35 per cent of all loans taken out during this period, with £1.55 billion in borrowed cash used to pay off credit cards and suchlike.
Steven Baillie, head of loans at Sainsbury's Finance, said: "Taking out a loan to consolidate disparate debts from previous loans or credit cards can save a significant amount of money in terms of monthly outgoings."
He emphasised that this is especially the case for those who have taken out products with high annual percentage rates.
Richard Talbot, director at Credit Action, recently said that people are generally becoming more aware of the need to save, especially younger generations. |
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