Loansmart - The Average Size Of Debt Consolidation Loans Increased By $5,000

Friday, 27 January 2023, 10:34 am
Press Release: Loansmart

Loansmart has just released the numbers behind its debt consolidation loans, showing that borrowing is on the rise. During the past year, the average consolidation loan increased by $5,000, and the number of loans consolidated increased from 2-5 to 3-7. The average debt consolidation loan at Loansmart is now $20,000, and it's only expected to rise. This highlights the challenging financial situation some households are currently facing.

Murray Greig, Managing Director of Loansmart, says his team is doing more and more debt consolidation as the cost of living starts to impact people. And certainly, people are needing to borrow more. “The goal of debt consolidation is to make repayments more affordable, so households aren’t under so much pressure. Sometimes they need a top up as well, and if they meet the affordability criteria we can help them out, says Murray.”

People who are feeling financially stressed should consider how they can restructure their debt before they miss a payment. It helps to have a good credit score when you apply for a loan, and even being late on your power bill a few times can hurt your rating. Murray encourages people to seek help before it gets to this point. Loans are not ‘set and forget’ and it’s important to always make sure you’re getting the best deal. Getting a loan assessment is free with Loansmart, and it can all be done online, so it's more convenient. By investing a little time now, you may be able to weather the cost of living crisis more comfortably.

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