Consumers with debts held on store and credit cards could save as much as £1,200 by switching to a personal loan, Alliance & Leicester has found.
However, just eight per cent of the population is thinking about taking this option, the bank discovered.
Alliance & Leicester Personal Loans found that by moving £5,000 of debt from cards to a personal loan the average consumer could save £1,213.56 in interest payments over three years.
Andy Bayes, head of personal loans, Alliance & Leicester, commented: "It is worrying that so many people with expensive debts are ignoring their financial situation and not thinking about ways to reduce them and save money. Consolidating all debts onto one personal loan will not only save money, but offer a repayment discipline and offer reassurance by clearly setting out an 'end date' for their debt.”
"Debt consolidation to a low-rate loan is a sensible and viable option for many of today's borrowers who yearn to be free of their debts. Looking to review finances in the New Year is one resolution that shouldn't be broken."To find out more about debt consolidation and personal loans, click here.
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