Credit-crunched Brits 'could save £20bn'

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Credit-crunched Brits 'could save £20bn'

Mon 19th Jan 2009

Brits struggling with a heavy debt burden because of the credit crunch could save as much as £20 billion in total by managing their debts better, according to uSwitch.com.

The price comparison website estimated that by consolidating all their debts into a single, more manageable monthly payment, the average UK household could save around £803 over five years.

Louise Bond, personal finance manager at uSwitch.com, said that 2009 could be set to be one of the "toughest years in the history of the UK" and advised people to get their debts under control.

However, she added: "Borrowers need to be aware that taking out a loan or credit cards to consolidate debts must be approached in a disciplined way and should not be treated as a quick-fix solution to debt problems."

Credit Action, the UK's national debt charity, recently calculated that personal debt in the UK spiralled by £1 million every ten minutes last year.

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