According to recent research by one of the UK’s largest supermarket chains (J Sainsbury’s), debt consolidation is one of the most common reasons for Brits to procure a personal loan.

Apparently, almost half of all loan applicants apply for finance with the intention of consolidating all of their outstanding debts into one lower, more affordable, monthly repayment.

A spokesperson for the chain suggested that rising consumer debt in the UK is forcing many people to review their financial situation, with a large proportion seeking more effective means to manage their credit commitments.

However, he also advised that any consumer who is considering the loan consolidation route must also actively way up the pros and cons of doing so. A separate study revealed that a sizeable percentage of consumers who do choose such routes actually worsen their situation due to poor management of the loan.

In conclusion, a debt consolidation loan can be an extremely effective way to manage a number of smaller credit commitments, but consumers must realise that self-control is key to its success and in a large number of cases, the latter is usually all that is needed to control a person’s debt situation.