Consumers turn to peer-to-peer to fix Christmas debt

The start of 2014 has proved to be the busiest in the history of RateSetter with a huge rise in consumers using the platform to consolidate their loans and cope with Christmas debt. Over £4 million worth of loans has been facilitated by RateSetter in only 10 days compared to around £2 million during the same period last year.

According to RateSetter, the platform has experienced a 213% increase in the number of debt consolidation loans – meaning almost a third (29%) of all loans were for debt consolidation.

Rhydian Lewis CEO at RateSetter said:

“January is a tough month with people having to face up to the bills accrued over Christmas. But it is encouraging to see a trend towards people becoming more astute in how to manage these higher debt levels. This includes seeking options outside of traditional bank or credit card loans to get better rates and keep debts and repayments at a manageable level.”