Fool.co.uk advises on consolidation loans
People who opt for a consolidation loan should always be very careful with their budget while repaying, Fool.co.uk has advised.
Consolidation loans are often taken out by those looking to streamline their debt into a single payment.
They are suitable for those who are trying to pay off credit cards as well as other loans - and find it inconvenient and costly to have several separate repayments.
According to figures from Fool.co.uk, around 40 per cent of those who take out a consolidation loan do so for this reason.
David Kuo, head of personal finance at the website, said: "Rolling up several expensive debts into one affordable monthly payment can make sense if you are faced with a myriad of claims on your money."
He added: "While consolidation loans can be a welcome lifeline, you need great discipline to stop it from being a noose around your neck."
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