Debt worries result in many consolidations
According to a recent report an increasing number of people have decided to consolidate as a result of financial woes and worries in an increasingly difficult financial environment. Figures have been taken over the last several years, and officials claim that over the past three years around 6.5 million borrowers have decided to consolidate their debts and move them all over to one provider in order to cut back on outgoings, ease financial management, and have fewer debts to juggle.
The figures also show that out of this group around 1.29 million have consolidated debts of over £20,000 in the form of credit cards, loans, store cards, and other forms of finance. It was found that people aged between 25 and 24 years were most likely to consolidate debts and move them all over to one lender. Around 23% of people in this age group have consolidated their debts and moved them all to one provider.
One official stated: “Anyone who is juggling a range of debts with money owed on credit cards, store cards and loans should be acting to get their debts under control. It is encouraging that so many people have taken action as you can make significant savings by moving all your debts to one place.”
He went on to state: “With average standard credit card rates at 17.01 per cent compared to average unsecured loan rates of 8.44 per cent it is clear that borrowers can cut their monthly interest bill by moving. However it is crucial that borrowers see consolidation as a wake-up call to get debts under control. It shouldn’t be something you keep on doing simply to tide you over from year to year.”
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