- Tuesday, 20 April 2010The decline in debt consolidation this year has come about because fewer people are taking out new loans, a financial expert has suggested.
Adrian Lowcock, senior investment advisor for Bestinvest, believes it has been better for people to pay off their debt as rates on mortgages and personal loans have increased rather than keeping their funds in savings.
He commented on Sainsbury's Finance's findings, revealed yesterday, which indicated that the number of people taking out a debt consolidation loan for
debt management has decreased over the past two years.
"No new people are coming in borrowing various sums of money to bring new consolidation in. On top of that you have got people paying off debt, which I think is one of the bigger factors," said Mr Lowcock.
These changes in attitude towards paying off debt seem to be medium to long-term because borrowers can no longer access the debt they used to be able to get, he suggested.
Sainsbury's Finance thinks that the declining number of debt consolidation loans is due to the economic climate.
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