Wednesday, September 12, 2007
When in hole stop digging
The majority of people who take out a personal loan to consolidate existing debts go on to build up more debt and struggle with the consequences...Research commissioned by price comparison website moneysupermarket.com shows 28 per cent of Brits (12.7 million people) have taken out a loan to consolidate some or all of their existing borrowing. Worryingly, of those who took out a personal loan to merge their existing debt, 8.4 million people (66 per cent) continue to build up even more debt. While still paying off the original loan, five per cent of them took on another loan, 12 per cent went into their overdraft, 28 per cent racked up more debt on their credit card, and 21 per cent did a mixture of the above. Thirty per cent would consider consolidating again or are about to do so.