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Consolidate to combat the credit crunch
Consolidating debts into a single monthly repayment through a personal loan could help avoid the effects of the credit crunch, according to a financial advice website.
The Thrifty Scot says consolidating debt this way can improve an individual's credit status, which could be attractive to future lenders and reduce interest payments in the long term.
It is part of a package of recommendations to help consumers avoid a personal credit crunch in 2008 as utility bills rise and the housing market slows.
Other tips include budgeting for the end of special mortgage deals later in the year, improving credit ratings through direct debit payments and shopping around for the best deals on utilities.
The site also advises consumers to check their current credit report, which should include all existing credit accounts, to ensure it is accurate.
According to the charity Credit Action, personal debt in the UK currently stands at £1.4 trillion, with the average household debt including mortgages standing at £56,234.