Debt consolidation `could save consumers £20 billion`

Consumers in the UK could save a combined total of £20 billion by consolidating their debts, it has been suggested.

According to uSwitch.com, Britons currently pay out about £98 billion in loan interest each year.

The price comparison site goes on to say that consumers could save money by consolidating all their unsecured debts - including credit cards and unsecured loans - into one lower-cost form of credit.

Louise Bond, personal finance manager at uSwitch.com, stated: "As we embark on what is expected to be one of the toughest years in the history of the UK, it is vital that borrowers give themselves the best possible chance of servicing their debt in the most economical and manageable way possible."

Recently, Jim James, north-east regional chairman of insolvency trade group R3, warned that consumers who are unable to clear their credit card balance each month may have the beginnings of a "debt addiction", the Northern Echo reported.