22. Consolidated loans
‘I can get no remedy against this consumption of the purse; borrowing only lingers and lingers it out, but the disease is incurable.’
SHAKESPEARE, Henry IV, part 2
Consolidating all your debts into one loan can either be an act of fiscal brilliance on your part or a financial disaster.
Debt consolidation occurs when you take out a loan or other credit agreement in order to pay off two or more existing debts. When the UK’s Office of Fair Trading (OFT) investigated the debt consolidation market, it found that most of us do not shop around, even though this could save us money. Two-thirds of borrowers who consolidated debts obtained information from only one provider. This is very bad practice. The OFT also found that many ...