Fewer Brits will consolidate debts, expert predicts

Wednesday, April 21st 2010

Many Britons have recently opted to pay off their debts rather than save money, which could be partly responsible for a change in borrowing habits, it has been claimed.

Adrian Lowcock, senior investment advisor at Bestinvest, claims debt consolidation could decline in the near future.

This is due to people no longer borrowing money at the same level as they once were, because it is more difficult to access debt in the first place.

And those who have previously borrowed are often paying this money back already, which "will combine to a reduction in the consolidation process", he added.

Sainsbury's Finance revealed on April 19th that debt consolidation is now a much less significant motive among those asking for personal loans than it was two years ago.

In 2007, one pound in every 13 taken out by the company's customers was for this reason, but this dropped to one pound in every 50 in 2009.