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Unsecured loans a good idea for debt consolidation

Unsecured loans a good idea for debt consolidation

Category: Loans

Updated: 22/01/2009
First Published: 22/01/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Consumers have been advised to consider taking out unsecured loans in order to consolidate their debt.

Sainsbury's Finance has estimated that around 250,000 unsecured loans are likely to be granted for this purpose in the first quarter of the year.

And head of loans at the company Steven Baillie has suggested that this could benefit those who are facing high interest rates on a number of other finance options.

"Debt consolidation is always a good idea if you have multiple sources of debt, maybe a store card and credit card or a historical loan," he remarked.

According to Sainsbury's, around 700,000 personal loans were used for debt consolidation purposes in 2008, worth more than £8 billion in total.

Last month the firm announced that its interest rate for loans over £7,000 had been cut from 8.9 per cent to 8.2 per cent, before dropping it further to 8.1 per cent last week.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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