Moneynet launches debt consolidation loans as insolvencies rise

Thu, 08 Sep 2005

One of the UK’s leading financial comparison websites, Moneynet.co.uk, has dedicated a section of their site to debt consolidation loans. It has been widely reported in the media recently that UK consumers are battling with ever increasing debts.

Credit Action a charity that provides money education, found that the number of insolvencies had gone up by 36.8 per cent in the second quarter in 2005 compared to the same time last year. According to Credit Action, a survey was conducted by Lloyds TSB that showed 20 per cent of people admit they do not check their bank balances for fear of seeing their balance.

The Department of Trade and Industry (DTI) have carried out the most up to date survey on financial services. It revealed five per cent of people find household debts a ‘heavy burden,’ with the Citizens Advice Bureaux reporting that consumer debts issues have grown by 74 per cent over the last seven years.

Taking the above into account, Moneynet’s decision to try and do something to help those struggling with debt issues is a timely step, especially in the current political climate. The Government is targeting loan sharks and unethical financial products aimed at consumers but the Governments action plan needs the support of the finance industry. Moneynet are looking to build on its reputation of ethical trading by giving consumers choice when it comes to consumers choosing their products.

Richard Brown, Moneynet’s Chief Executive Officer commented, "Whilst we urge people to think carefully before consolidating their debts, this can prove to be a lifesaver for many people. Amalgamating all credit card, store card and personal loan debt into one can make the payments more manageable. However, once this has been done it is often sensible to destroy existing credit cards and avoid the temptation of running up further debt until the loan is repaid."

Moneynet’s debt consolidation section offers loans in line with consumer initiatives including a range of products and lifestyle guides. As well as offering price comparisons on credit cards, loans, insurance and mortgages, they also offer consumer information on family finance, making ethical investments and student finance. For further information please visit www.moneynet.co.uk.
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