Debt consolidation: one way to combat inflation

With inflation reaching 4% - the highest level since 2008 - debt consolidation could be one way for borrowers to make better use of their money and cope with rising prices.

So says a press release from moneysupermarket.com, which points out that borrowers may be able to `reduce expensive borrowing by consolidating existing debt to a 0 per cent credit card or low-rate personal loan`.

The press release lists quite a few ways of limiting the impact of rising prices on your budget - `fighting back against the rising cost of living`.

At the top of the list, there`s `review your mortgage`. With the likelihood of a base rate rise increasing (due to higher inflation), people on a variable-rate mortgage may wish to consider switching to a fixed-rate deal before that happens.

It also suggests using cashback credit cards, taking advantage of ISAs, switching energy supplier, renewing car insurance, driving less, shopping online and using discount vouchers.

A spokesperson for debt management company Gregory Pennington commented: "Keeping a close eye on your finances is always important, but times like these make it even more so. Prices are rising and people everywhere are worried about the impact of public spending cuts - it`s well worth looking out for lists like this one that can help you make better use of your money."