Sainsbury's Bank is advising customers to shop around for the best loan consolidation deals as Britons look to take action after their heavy Christmas spending.
Traditionally, January is the time when people look to consolidate their debts, but research from the bank shows that just over one in four people predicting that they will not be able to clear their yuletide overspend by the end of the month.
Around 569,000 expect it to take more than a year to clear the debts and Sainsbury's calculates that this will contribute towards more than 500,000 personal loans, worth more than £5 billion, which will be taken between January and March for debt consolidation purposes.
"Sadly, many people don't shop around when taking out a personal loan, wrongly assuming they can only obtain a loan from the bank or building society they have their current account with," said Steven Baillie, loans manager at the bank.
"Consolidating your debts with a more competitive loan could save you hundreds or thousands of pounds in interest so it's important to shop around to find a competitive rate."
Mr Baillie adds that Sainsbury's has just cut its loan rates for telephone applications to 6.1 per cent typical APR. To compare Loans, click here.
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