Experian has issued the advice that borrowers who find themselves in various situations of financial difficulty should talk to the lender or a free financial advice service if they are considering a consolidation loan.
Experian said that a consolidation loan can help people with unmanageable debt, but they should be aware of the other options available.
James Jones, of Experian, commented: "Debt consolidation is one of a range of options. I would encourage people to always speak to their lenders if they are struggling to make payments and if they feel the situation is getting out of control, they should seek advice from one of the free advice agencies, from citizens advice, or national debt line.
"They can help you to decide what the best solution for you is and can negotiate on your behalf which can be a very useful route to take."
