Consumers taking personal loans to consolidate their debts

Many UK borrowers are relying on personal loans to consolidate their debts. However, the experts recommend that financial discipline should be observed otherwise all the benefits of debt consolidation would be negated.

London (online-unsecured-loans) February 21, 2007: A research from a leading online comparison site reveals that 28 per cent of the UK consumers have consolidated their debts by taking out a personal loan.

Unsecured debt consolidation loans offer the consumers many benefits. Unsecured debt consolidation loans or personal loans taken for the purpose of debt consolidation can benefit consumers only as long as they resist borrowing further.

The experts say that the benefits gained from using a loan to consolidate debts might soon be negated if your additional spending is supported with further borrowing. The research also reveals that 8.5 million of 13 million UK consumers who opted for debt consolidation through personal loans, actually continued to borrow to support their further spending.

An unnamed financial expert advised borrowers by stating that: "Taking out a personal loan to consolidate debts can be a useful way for people to get their finances under control, but a loan for these purposes should be considered carefully and only regarded as a measure for becoming debt-free, not as a license to go spending again."

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