Could debt consolidation counter borrowing rise

Could debt consolidation counter borrowing rise

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Video transcript

This year has resulted in a four per cent increase in unsecured lending, according to a new report, and debt consolidation could remain a useful way for many people to keep their spending in check.

PwC`s Precious Plastic survey has indicated that household debt – excluding mortgages – has risen to £216 billion in 2013 or a little over £8,000 each. Increased student tuition fees are causing much of the damage, as without them, the average figure would be around £5,900.

The report shows that 26 per cent of people remain concerned about their ability to pay back what they owe, but the amount of 25-34 year olds putting essentials like groceries on credit cards has fallen from 25 per cent in 2012 to 15 per cent this year.

While credit cards can be a suitable way to spread payments when hit with unexpected bills, if you struggle to pay back what is owed and keep using credit to fund your lifestyle then at some stage you may run out of available credit and just be left with large monthly bills. In that case debt consolidation could help to restructure your finances so that you pay back a more manageable amount each month, although you may end up paying more in interest.

Discover more about how debt consolidation might help you pay back your unsecured debts and improve your cashflow by visiting firstchoicefinance.co.uk or by calling us on 0800 298 3000 or 0333 003 1505 from a mobile.

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