A new survey has shown that over half of the people who have consolidation loans in the UK in order to ease financial strain go on to run up more debt.
These worrying figures collated by leading finance website Fool.co.uk also revealed that while many people with consolidation programmes have the opportunity to repay debts early, only 25 per cent have the means to do so.
A spokesperson for Fool.co.uk commented: “Consolidation loans can be a welcome lifeline for people caught in financial difficulties. But the lifeline can quickly turn into a noose if you submit to the temptation of running up further debts.”