Nearly a third of the 13m Brits who have taken out a consolidation loan to manage their debts feel either trapped by debt or in danger of it spiralling out of control according to research by moneysupermarket.com

And 9m of the 13m consolidators admit they have subsequently run up more debt on credit card, overdrafts and with additional loans. For information on the debt management plans pros and cons you can view these online here.

Jackie Newton, general manager of Chiltern Debt Management says: “Consolidation loans are presented as the way out of debt by a large number of lenders, but what people taking on such loans often don’t take into account is that they also need to change their spending and borrowing habits.

“The initial benefit of a debt consolidation loan will quickly be lost if that person continues to spend how they did before taking out the loan and ends up having to make the monthly loan repayments and service their new credit commitments.”

Tim Moss, head of loans and debt at moneysupermarket.com said: “Debt has certainly become the common curse of modern times. Whereas 40-years ago being in debt was considered a last resort, it seems that today’s Brits are very much accustomed to taking on debt – although actually being able to control it is another thing.”

Chiltern Debt Management has been helping people in debt for over ten years and the company’s team of dedicated counsellors are able to help with everything from short-term debt problems to those facing insolvency or bankruptcy.

“Taking a personal loan to consolidate debts can be a useful way for people to get their finances under control, but a loan for these purposes should be carefully considered and only regarded as a means of becoming debt-free, not as a licence to spend,” adds Ms Newton.