1 IN 7 GET LOANS TO PAY DEBT
ONE in seven adults has taken out a consolidation loan in the past three years to get their debts under control, it was claimed today.
The average amount borrowed to clear previous debt was £13,000. But six per cent needed more than £50,000, figures showed.
Unsecured personal loans were the most common means of refinancing, with more than a third choosing this option.
Remortgaging was also popular, with nearly a fifth adding to their home loan. Slightly fewer opted to transfer their debts to a zero-rate credit card.
Price comparison website MoneyExpert.com said consolidation was a good way to control debt.
Boss Sean Gardner added: "But there is a concern many see it as a way to keep on borrowing."
SOURCE: The Mirror 26/02/2007
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