Brits urged to consolidate in the new year

Posted 2008-01-2

Britons are readily loading large amounts onto their credit cards as the full effect of the Christmas spending blitz hits home.

Research from uSwitch.com has found that 9.5 million people in the UK have already maxed out at least one of their forms of credit over the last six months, including credit cards, overdrafts and unsecured loans.

And more than three million people are planning to switch an average balance of £2,666 onto new credit cards in the first three months of 2008 in order to cope, according to research from Abbey.

But consolidating to a best buy loan could save the average household £605 in three years, according to uSwitch.com, which it claims could be the difference between solvency and insolvency.

Mike Naylor, personal finance expert at uSwitch.com, explained: “People have enjoyed easy access to cheap credit for quite some time, but for some, the party really could be over.

“Anyone with multiple debts and a poor credit history could be vulnerable to the impact of the credit crunch and should seriously consider consolidation while the option is still available.”

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