- Wednesday, 27 May 2009More and more people in the UK are opting to take out loans as part of a debt management strategy, it has been found.
Halifax has released the results from its Personal Loan review, which indicated that some 54 per cent of people who applied for loans last year did so with debt consolidation in mind.
For example, some applicants used consolidation loans as a means of reducing the cost of borrowing by transferring money away from products such as store cards.
Director of loans at Halifax Russell Galley, said: "Our research shows that loans are taken out for a wide variety of reasons.
"Similar to the last annual review there is a continued trend in the number of people who are looking to invest in themselves and their future."
The report also showed that one in six people surveyed chose to take out loans for essential improvements in the home.
Another option for those looking for debt management solutions may be an
individual voluntary arrangement or IVA, a formal agreement with creditors to reduce the amount of money due to be paid back.
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