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Consumers `increasingly experiencing debt problems` Over-50s `better at managing credit card debt` New banking rules `may restrict access to loans` UK `must reduce consumer debt` 700k `on Debt Management Plans` Recession `could lead to financial problems for retirees` Charity sees increase in debt, mortgage and loan arrear enquiries Retirees` finances `may be damaged by rate cut` Consumers `aiming to reduce spending` People `increasingly turning to illegal loans` Children raised in credit crunch `may be better able to manage money` Many parents `pushed into debt by adult children` Young people `failing to protect themselves for debt repayments` Consumers in East Midlands `relying less on debt to fund lives` Plans set out to help people in debt PPI ban `could leave consumers without loan cover` Govt `must step in to stop debt addiction` Cash-strapped Brits `see fraud as more acceptable` People `should not rely on mortgage rescue plan` Consumers `to take out £3bn in debt consolidation loans by Easter`

Debt consolidation `could save households 605 pounds in 3 years`

02/01/2008

Households in the UK could save themselves £605 over three years by taking out debt consolidation loans, according to new research.

Price comparison site uSwitch found that 9.5 million people in the UK have `maxed out` on one or more forms of credit over the past six months, with many racking up unmanageable debts in the process.

According to the website`s calculations, the average household in the nation owes £4,280, meaning debt consolidation is one option that may be advisable for many.

"Anyone with multiple debts and a poor credit history could be vulnerable to the impact of the credit crunch and should seriously consider consolidation while the option is still available," recommended Mike Naylor, personal finance expert at uSwitch.com.

In addition to turning to lenders, many people in the UK turn to family and friends when in need of a loan, research from PayPal shows.

According to the online payment service, the average person in Britain is owed £898.52 by loved ones.

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