Personal loans are ‘positive’ for managing debt

Taking out a personal loan could be a "positive move" for those consumers looking to consolidate their debt, an industry expert has revealed.

According to Helen Saxon, spokesperson for the Finance and Leasing Association, choosing a low rate loan ahead of using credit cards generally results in lower interest rates, meaning more of their monthly payments go towards lessening their debt.

However, she warned that consumers "do have to be careful if you are consolidating that you don’t run up the debt again and that you can pay off any loan that you take out".

Ms Saxon added that personal loans are being used for a variety of purchases "across the spectrum", including home improvements and buying a new car.

According to a study by the Resolution Foundation, the creation of a generic financial advisory service could encourage Britons to take a better attitude towards secured personal loans and other forms of borrowing.

Interfinancial providing you with breaking personal loans news.