Debt consolidation ‘becoming a priority’

Britons are increasingly regarding debt consolidation as a priority, a new survey has shown.

A poll carried out by out by GfK NOP on behalf of the Financial Services Compensation Scheme (FSCS) has found that 30 per cent of consumers have high-interest debts, but of these, 81 per cent are seeking to pay these down.

One way of doing this can be by trying to set aside extra cash to pay money owed off early, while another could be consolidation by taking out a lower-interest loan that pays off more expensive existing loans.

And Britons are also trying to save where they can, with the study revealing four out of ten people have three months' salary saved up as a safety net.

FSCS chief executive Mark Neale commented: "It is encouraging that people are following the experts' advice to pay down high interest debts and, if they can afford to, keeping money aside for a rainy day."

Figures produced by the Consumer Credit Counselling Service for its Annual Yearbook showed that the typical unsecured debt of one of its clients last year was £20,023, down from £22,476 in 2010.

By Joe White