Over six million people have made additional borrowing arrangements in attempts to shake off their existing debt burden over the last three years, research from MoneyExpert.com has found.
Debt consolidation has become the debt 'solution' of choice for as many as one in seven adults in the UK - and unsecured personal loans the most popular way out of a financial mess.
Consumers are taking out consolidation loans worth £13,000 on average, which entails minimum monthly repayments of £393.99, the financial advice site calculates, while six per cent of those consolidating their debts have borrowed over £50,000.
"Debt consolidation is … a good way to get your finances under control if you owe money to different lenders at varying rates of interest," MoneyExpert chief executive Sean Gardner commented.
But "it only works if you accept consolidation is a wake-up call to get your borrowing under control", he added.
Borrowers' plight worsens each time interest rates rise and most analysts predict at least one more hike to the base rate this spring or summer.To learn more about consolidation loans, click here.
© Adfero Ltd