Sainsbury’s Bank estimates that up to 433,800 personal loans worth around £4.8bn will be taken out between January and March 2007 for debt consolidation purposes.
Research from the bank found that only 52% of people expect to clear their Christmas spending by the end of January, with 8% expecting it to take longer than 12 months.
January is one of the busiest months of the year for transferring balances between credit cards and for taking out personal loans for debt consolidation.
Steven Baillie, loans manager at Sainsbury’s Bank, says: “Consolidating your
debts into one personal loan which charges a lower rate of interest can mean
that you could save hundreds of pounds in repayments.”