This post was originally published on Fin Extra
Millions of UK consumers could save an average of £1,257 each year by consolidating unoptimised debt, according to new Experian research.
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As the UK braces for the Autumn Budget this week and with Christmas spending adding seasonal pressure to household budgets, new research reveals that wider adoption of debt consolidation technology could unlock £15.1 billion in household spending and generate £2.1 billion in extra savings annually through reduced interest costs.
Currently, 83% of UK borrowers (34 million people) carry revolving credit that isn’t optimised – meaning they’re paying more interest than necessary. Having multiple lines to manage and budget for increases stress, probability of missing payments and for some – entering a debt spiral. Debt consolidation could reduce monthly outgoings, simplify repayments, and help people regain financial control. Debt consolidation is also the most common reason people search for loans on Experian’s Marketplace, showing just how many people could benefit from better support.
To address this, Experian integrated ReFi™, an innovative debt consolidation technology, into its Marketplace. Unlike traditional consolidation loans, ReFi™ generates final settlement balances and pays off existing debts directly
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