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UK `must reduce consumer debt` 700k `on Debt Management Plans` Recession `could lead to financial problems for retirees` Charity sees increase in debt, mortgage and loan arrear enquiries Retirees` finances `may be damaged by rate cut` Consumers `aiming to reduce spending` People `increasingly turning to illegal loans` Children raised in credit crunch `may be better able to manage money` Many parents `pushed into debt by adult children` Young people `failing to protect themselves for debt repayments` Consumers in East Midlands `relying less on debt to fund lives` Plans set out to help people in debt PPI ban `could leave consumers without loan cover` Govt `must step in to stop debt addiction` Cash-strapped Brits `see fraud as more acceptable` People `should not rely on mortgage rescue plan` Consumers `to take out £3bn in debt consolidation loans by Easter` Some shoppers `reducing spending due to debt` People `sharing cost of living to avoid debt problems` Brits `getting to grips with debts in new year`

Consolidation loans `good for people with bad credit rating`

14/04/2008

Debt consolidation loans are a good option for consumers who are worrying about their bad credit rating, according to one industry expert.

While taking out a loan when a consumer has a bad credit rating is often seen by lenders as a risk, there are many professional debt advisors who can seek out the best debt consolidation loan, Christian Phelps said.

Mr Phelps, from Lancaster University, said that a loan can help people with a number of creditors pay off their debts, leaving only one creditor to deal with - reducing the stress attached to debt problems.

However, he warned: "Because the lender`s money is at risk the rate of interest charged with high risk personal unsecured loans is high."

Recently, debt consolidation expert Amenda Dorothy said that unsecured debt consolidation loan is the most frequently used loan to manage credit card debts.

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