Consolidation 'good for larger debts'
Consolidation 'good for larger debts'
Wednesday 28th January 2009
According to the Independent, borrowers who already have zero per cent credit cards and good rates on personal loans may be better off seeking alternative methods to pay off their debts.
However, those with larger borrowings should consider consolidation as a way to manage their credit and eventually become debt-free.
"The theory is that, by putting all your debts in one place, you can save money on interest and time on making lots of individual payments," the newspaper explains.
"If you have larger debts at higher interest, it may be worth moving them into one unsecured loan."
Research recently published by uSwitch revealed that UK borrowers currently pay out £98 billion in interest each year, but could save a collective £20 billion by consolidating all their unsecured debts into one loan.
News article brought to you by Debt1 – One of the UK's leading debt management companies.
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