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Benefits to paying off debts with personal loans

November 1, 2007 by admin  
Filed under News, News-Loans

1 Comment

The main reason people take out personal loans is for debt consolidation, which is no harm, an industry expert has said.

Steve Baillie, head of loans at Sainsbury’s Bank, explained that doing so can be a positive way for someone to start to bring their finances under control.

He said that there are three big financial issues for people, getting out of debt, paying for a new car, and home improvements.

“What you’ll probably find is, anybody that’s doing debt consolidation will probably be doing an element of a purchase at the same time,” he added.

“So there’s a trigger to sorting things out, whether they’re sorting out the house, or putting a new bathroom in or whether they’re getting a second car for the family et cetera.”

Total lending was up by £11.2 billion in September this year, according to research by Credit Action. Meanwhile secured lending saw growth of £9.8 billion during the month.

Tags: personal loans, Credit Action, main reason people, finance, house

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Comments

One Response to “Benefits to paying off debts with personal loans”
  1. alice smith says:
    November 25, 2007 at 12:05 pm

    Just read Mr Baillie’s comments on reasons for taking out personal loans and am inspired to share my personal experience. I took out a loan from Sainsbury’s to cover a career development loan and one year later became seriously ill, couldn’t work and couldn’t pay, but yet was given no leeway. The bank was not helpful and not prepared to negotiate terms to accommodate my illness. Be warned.
    Lending more money from these people may just not be the answer to your financial problems and they certainly don’t have your interests in mind. Be careful.

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