According to a recent survey, conducted by uSwitch.com, 1 in 4 people who arrange a debt consolidation loan then go on to run up further new debts.
Almost one third of personal loans taken out over the past twelve months were for the purpose of debt consolidation .
The lesson is simple - a consolidation loan can often be the best way to become debt free, but you must ensure that the arrangement you make is realistic and affordable. You should also address the habits that got you into debt in the first place - if you have reached the point of becoming responsible enough to face up to your debt and do something about it, you need to keep this attitude to your future spending and not return to old habits. Your will power will be rewarded as you watch your debts shrink.
