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Wednesday 26th September, 2007
The top reason people give when taking out as loan is debt consolidation, recent research has found.
Sainsbury's Bank revealed the reasons given for taking out a loan. Thirty percent of its customers wanted a loan to buy a new car, 25 percent wanted a loan for home improvements and forty percent wanted a debt consolidation loan.
Sainsbury's Bank commented that those using debt consolidation as a strategy to attack their debt problem need to be "strict with themselves".
Debtwatchdog backs the comments made by Sainsbury's Bank as debt consolidation if it is not used carefully can add to your debt woes. If you are considering taking out a loan to consolidate your debts you must ensure that you are not just deferring payment to a later date.
Debt consolidation is a useful tool but you must ensure you have a rigorous Debt Management Strategy in place before taking out such a loan. If you do not then you'll just end up repeating the same mistakes which got you into debt in the first place.
Debtwatchdog can help offer free independent advice about your debt problems. To establish the extent of your debt problem complete our Statement of AffairsStatement of Affairs. This will indicate you how much control you have over your finances and where you can make improvements.
Written by Chris
