By Easter debt consolidation loans could reach £3 Billion
10/02/09
According to Sainsbury’s Finance, the amount of loans taken out for consolidating debts could amount to almost £3 billion by Easter. The first six months in a year are usually the busiest period for consumers taking out loans and considering consolidating their debts.
Approximately 250,000 unsecured loans will be taken out in the first quarter of this year according to Sainsbury’s Finance.
“Debt consolidation is always a good idea if you have multiple sources of debt, maybe store card and credit card or a historical loan,” Steven Baillie head of loans at Sainsbury’s commented.
He continued, “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.”
According to the research carried out Sainsbury’s Finance, somewhere around the region of twenty-five per-cent of all personal loans taken out are done so for consolidation purposes.
