New information on consolidation loans

Thursday, September 8, 2005

New information to help advise consumers on consolidation loan products it to be available online.

The comparison website Moneynet.co.uk has launched a new section that will deal directly with the issue of debt consolidation loans – which are becoming increasingly popular with borrowers.

The number of individual insolvencies has increased by 36.8 per cent over the second three months of the year, according to Credit Action, a sign that more people are starting to struggle to meet debt repayments.

Moneynet hope that by providing clear and up-to-date information it will ensure that consumers do not fall victim to "loan sharks" or irresponsible lenders.

"Whilst we urge people to think carefully before consolidating their debts, this can prove to be a lifesaver for many people," said Richard Brown, moneynet’s chief executive officer.

"However, once this has been done it is often sensible to destroy existing credit cards and avoid the temptation of running up further debt until the loan is repaid," he added.