Lumping debt into one no solution

0
Have your say

I began to muse about just how useless, devious and unhelpful the loans industry really is.

You see the advertisements of the television promising to wipe out all your debts if you would only consolidate them into one.

Unhelpful?

Well, yes.

Let’s just have a look at the figures.

If say, a person with a combined total of £5,000 of debt including all the interest, were to take out a £5,000 loan with which to clear them all, he would simply be replacing one debt with a bigger one.

The debtor will already have paid all his original interest, now he has more to pay on the new loan and thus gets even further away from solvency. It’s crazy and wrongly builds the hope of a solution in people who are probably already worried sick.

Jim Walker

Address supplied