Survey shows that average UK consumer tends to pay up more after availing consolidation loans.
June 7, 2007 (Press Release) --
As per a recent survey conducted on trends on consolidation loans in UK, the results showed that those who take consolidation loans end up paying more money. While a consolidation loan is taken to decrease or manage their debts effectively, people who take this loan fail to put a control over their borrowings and hence land up in such a situation. Such people account for over 50% of those who are availing consolidation loans.
Consolidation loans, in UK, are usually taken to settle off small unsecured loans and debts risen due to credit cards, everything into one loan. Almost three out of five people in UK, as per the survey, have experienced an increase in accumulation of debt after taking a consolidation loan. One of the main cause cited for this is that after taking consolidation loan, people tend to avail more loans and therefore have more repayments to be made. Once all the debts are consolidated into one debt, people get tempted to take more debts and also have a tendency to delay repayments.
Consolidation loans, in UK, are usually taken to settle off small unsecured loans and debts risen due to credit cards, everything into one loan. Almost three out of five people in UK, as per the survey, have experienced an increase in accumulation of debt after taking a consolidation loan. One of the main cause cited for this is that after taking consolidation loan, people tend to avail more loans and therefore have more repayments to be made. Once all the debts are consolidated into one debt, people get tempted to take more debts and also have a tendency to delay repayments.
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