Searches for debt consolidation loans jumped by 29% in January compared to the same month last year.
The data from credit information company Experian suggests some people are looking for ways to make their debt repayments more affordable or simplify their repayments by bringing their debts together.
Just over a fifth (21%) of debt consolidation loan searches on Experian relate to people in their 30s.
The data also recorded jumps in people in their 40s and 50s looking for such loans.
James Jones, head of consumer affairs at Experian, said: “Our data suggests that people are looking at ways to take control of their finances and ease the squeeze on their purse strings.
“Those aged 40 to 60 in particular are increasingly searching for debt consolidation products. They often have families or dependants and are looking for ways to better manage their money by switching to products with a simplified payment plan and lower interest rate.”
How to tackle debt
It’s certainly not easy but there are ways to pay off debt and get support.
Mr Jones suggested 0% interest balance transfer cards can be a good option for people looking to make more affordable repayments.
He said: “People can reduce the amount they spend on interest by switching debts from existing cards. While there’s often a fee associated with the switch, you won’t need to pay interest for a set period, potentially as long as two years, meaning every penny goes towards lessening what you owe.
“If you’re struggling to repay credit or other bills, we recommend contacting a free debt advice service such as National Debtline, Citizens Advice or StepChange. The sooner you seek help the better, and talking to a debt adviser will not affect your credit score.”
When is it worth considering a debt consolidation loan?
If you’re paying off several high-interest debts on credit cards, store cards and overdrafts then debt consolidation can be a cheaper way to clear your debts - and has the added benefit of feeling a bit less overwhelming.
It involves taking out a single loan on a lower interest rate to repay your debts and means you don’t have to make separate monthly repayments to lots of companies you owe money to.
Our sister site Go.Compare allows you to compare debt consolidation loans.
You should always use an eligibility checker first to see if you'll be accepted. This is important as any loan application will appear on your credit record, so making multiple applications could end up damaging your credit score.
Read more
-
-
Octopus Energy relaunches energy tracker deal – we explain what you need to know and if it could save you money
If you’re an Octopus Energy customer, you may be able to save on your energy bills with the relaunch of its tracker deal. We look at how it works
-
Three energy firms pay £8m in switching compensation - has your provider paid out?
More than 100,000 customers have received compensation after changing providers, but is now a good time to switch energy suppliers?
-
Save £300 on your supermarket shop with cashback accounts
Banks, credit card companies and cashback sites are all offering cashback on your supermarket shop, but can you use them all to max out your savings?
-
More than 150,000 grandparents missing out on £1,500 state pension uplift: how to claim
Grandparents who provide childcare by looking after their grandchildren could be missing out on valuable state pension money worth thousands. We look at how much extra you could get and if you’re eligible
-
Can you reclaim bank charges?
If you’ve incurred bank charges over the years, these can add up to hundreds of pounds – but can you get your money back? We look at whether you can make a claim and how to do it
-
HSBC extends deadline for customers to secure bigger interest-free overdraft
HSBC customers now have until 10 May to increase their interest-free overdraft limit from £25 to £500. First Direct, Lloyds and Nationwide also offer similar support. We explain everything you need to know
-
New banking hub locations revealed - is there one near you?
The rise of banking hubs is in response to a stream of local branch closes. With more planned to launch soon, we look at what services they offer and where you can find one
-
April 2023 premium bond winners revealed - are you a millionaire?
Two premium bond holders have won £1 million each this month and there are many other prizes for another 5,018,742 winners in April. We look at how to find out if you’ve won
-
Get more for your money with a stocks and shares ISA
A stocks and shares ISA could grow your money faster than a cash ISA. But what is it exactly and who is it suitable for?
-
Help to Save scheme extended – act now for £1,200 bonus
The government has extended the Help to Save scheme - we explain how it works and who is eligible
