2009 Trends for Loans, Consolidation Being the Key
According to an analysis by Sainsbury's Finance, there has been an upsurge in personal loans, applications being at their highest during the first 6 months of the year.
Consolidation of debts seems to be one of the biggest trends for personal loans with many consumers consolidating their debts into one, following the Christmas spending season. January, being the month for carrying out resolutions made in the New Year, is now becoming the busiest period for personal loan applications as consumers resolve to decrease the confusion and hassle caused by multiple repayment commitments. Unifying these debts into one single loan is increasingly popular.
Last year in the U.K alone, Sainsbury's estimates that £8 billion worth of personal loans as a means of consolidation was granted.
Debt-consolidation is always a good idea if you have multiple sources of debt, maybe a store card and credit card or an historical loan.
'Paying a number of individual rates of interest which could be as high as 30 per cent or more on some store cards for example is not the best way to approach your debt,' says Steven Baillie, head of loans from Sainsbury's.
Consolidation loans also allow you to avoid paying extra fees and penalties on late payments if you forget to pay the monthly bill on one of your many singular debts. All you have to do is remember the one fixed date to make your monthly repayment.