Consolidating credit card and overdraft debts can save borrowers £571 a year, moneysupermatket.com has found.
Consumers wishing to save money on debt payments in 2005 can transfer credit card balances to an interest free credit card, or take out personal loans which pay less interest than their current rate, moneysupermatket.com found.
"The key benefit of the zero per cent deal is that all of the monthly repayment goes towards clearing the balance outstanding and therefore the debt can be cleared much quicker. With so many good deals on the market, it's madness not to switch," said Richard Mason, director, moneysupermarket.com.
Another moneysaving option moneysupermarket.com is urging consumers to consider in the new year is debt consolidation.
"Rather than panic or ignore card and bank statements as they hit the doormat in the new year, consumers should spend a few moments assessing what they are paying out, at what cost and to whom," said moneysupermarket.com's Mr Mason.
"Debt consolidation is one option to help consumers take control and better-manage all of their debts under one umbrella, whilst repaying a lower, fixed rate sum," he added.To read more about consolidation loans, click here.
© DeHavilland Information Services plc