As the New Year approaches, millions are planning to turn over a new leaf by moving their borrowing from pricy plastic to inexpensive homeowner loan deals.
An Alliance and Leicester survey has discovered that reducing and better managing their debt remains a top priority for people in the UK.
More than one in five adults are planning to reduce their personal debts, with a similar number planning on changing financial products.
Fourteen per cent are planning to pay off their debts completely. But even if you cannot afford to clear your debts completely, a good homeowner loan deal can save up to £1,400 a year on repayments.
“It is understandable that people want to try to improve the way they manage their debt, and even reduce it as we enter the new year,” said Claire Alvey, personal loans manager at Alliance & Leicester.
“This doesn’t just mean spending less, but being savvy about the interest you pay back on your debts.
“For many people, consolidating existing debts onto one low-rate personal loan will not only save them money, but it will also give them a disciplined approach to repayment, and an ‘end date’ for when their debt will be cleared,” she added.
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