People experiencing difficulty repaying credit card and other borrowing could risk having a poor credit history, according to one expert.
Writing for Best Syndication, financial advisor John Lennon said one of the most effective ways of repaying debts and improving a credit rating is to take out a debt consolidation loan.
Consumers are likely to find balancing their finances are "much easier" with a debt consolidation loan, Mr Lennon suggested, noting that they have lower rates of interest and can be repaid in monthly instalments.
"The company providing these debt consolidation loans also formulates suitable debt management plans for their client, to help him better handle his debts and funds in the future and avoid falling into the trap of multiple debts in the future," he commented.
Earlier this month, Legal & General reported that the proportion of people who earn more than the combined cost of their bills and debt has fallen from 59 per cent to 57 per cent.
