A rapidly increasing number of people are consolidating their debts to keep their borrowing under control.

According to MoneyExpert.com 6.5 million people have been forced to consolidate their debts in the past three years. 1.29 million of these have moved debts of more than £20,000 that have been incurred through loans, credit cards, store cards and overdrafts, to one lender. The company also says it saw an 85%  increase in homeowner loan applications in the quarter ending January 2008, compared to the quarter ending October 2007.

 “Anyone who is juggling a range of debts with money owed on credit cards, store cards and loans should be acting to get their debts under control,” says Sean Gardner, Chief Executive of MoneyExpert.com. “With average standard credit card rates at 17.01%, compared to average unsecured loan rates of 8.44%, it is clear that borrowers can cut their monthly interest bill by moving. However it is crucial that borrowers see consolidation as a wake-up call to get debts under control. It shouldn’t be something you keep on doing simply to tide you over from year to year.”