Debt consolidation "No 1"
02 November 2007
Debt consolidation is the top reason for taking out a loan and for many people a loan can prove to be a useful way of coping with a seemingly overwhelming amount of debt, Sainsbury's Bank has claimed.
A spokesperson for the bank explained that debt consolidation loans can be a good way of sorting out finances, a decision which is sometimes prompted by people borrowing money in order to pay for renovations to their home or a new car.
Steven Baillie, head of loans at Sainsbury's Bank, said: "Debt consolidation is number one at the moment. But that's not a bad thing, if you look at it. Customers are sorting themselves out.
"What you'll probably find is, anybody that's doing debt consolidation will probably be doing an element of a purchase at the same time.
"So there's a trigger to sorting things out, whether they're sorting out the house, or putting a new bathroom in or whether they're getting a second car for the family etcetera.
"It's an opportunity for them to review their position," he added.
According to Credit Action, total lending in September 2007 grew by £11.2 billion from the previous month's figures.
