Control existing debts, consolidation customers told

Consumers that take out a consolidation loan in order to get their debts under control need to practice self discipline, it has been claimed.

Sainsbury’s Bank says that people who obtain a consolidation loan need to maintain control of their existing debts.

A spokesman for the bank revealed that more than 40 per cent of its loan customers are people looking to sort out their finances with a consolidation loan.

Meanwhile, the Guardian has reported that the cost of personal loans has risen in the wake of the recent credit crisis.

Bradford & Bingley told the newspaper it had “held off putting up rates for 18 months”, with a spokesman adding that “the current financial climate has certainly helped push these changes in the market”.

Rates for unsecured personal loans, the newspaper revealed, rising from below six per cent four months ago to the present climate, where the lowest rate available is 6.9 per cent.

© Adfero Ltd

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