As many Brits anticipate their first pay cheque of 2008 on Friday, it may be too late for some borrowers, it has been claimed.

Callcredit reports that 500,000 UK citizens will take out a loan in January, attributing the figures to the five-week wait between monthly pay cheques.

According to the firm, many people are too nervous to check their credit report or are being put off by myths that it is expensive and complicated.

Owen Roberts, head of Callcredit Consumer, said: "Your credit report is an essential tool in managing your finances - the better you understand it the more in control you will be."

The firm recommends that all consumers check their reports as it is "part of a healthy financial lifestyle" and can ensure that people get the best deal for them.

It related the action to looking at an online bank statement and also dispelled the myth that using a price comparison site will affect an individual's rating.

Credit Action reports that the average household is in £8,956 worth of debt, excluding mortgages.

© Adfero Ltd