Cards a poor consolidation alternative
British borrowers, who have been refused mainstream credit due to a national tightening of lending criteria, have been advised to avoid high interest products as an alternative to cheap rate consolidation loans.
One of the UK’s leading price comparison sites has revealed that some 10% of borrowers are deferring their debt consolidation requirements to high interest credit card providers, as concerns over their ability to balance regular credit commitments turns to desperation.
Individuals who have over indulged on credit over the past few years, and who would have otherwise pursued a low cost consolidation loan to control their debts, are now discovering that limitations within the loans market are leaving them in something of a hairy situation.
Commenting on the findings, a spokesperson for the site suggested that a percentage of British borrowers feel that they have been left with little other alternative than to use high interest credit cards, as a means to meet the demands of their other credit commitments. We have also recorded instances in which people are using credit cards, to clear the balances of other credit cards. As a by-product of this trend, we expect there will be quite a sharp rise in the number of people contacting consumer advice bureaus over the coming months, seeking help with regards to keeping their finances afloat.
