Every month over 180,000 people seek to consolidate their various debts with the majority believing an unsecured loan will provide the financial slack in their ever tightening budget belt.

However the credit crunch has tightened the belt of even the largest lenders forcing them to take a closer look before they leap into offering to help little old you.

Their first step has been to be more critical when looking into the credit profiles of those making loan applications, Sean Gardner of MoneyExpert.com commented on the reasons for this. Stating that “lenders are wary of customers' ability to repay what they owe” especially if the reason for the loan is consolidation as it indicates the individual is already struggling to keep up with their various credit agreements.

Lenders are questioning more whether they too will be added onto the list of difficult debts held by the individual and "so are becoming increasingly strict when it comes to choosing who they lend money to".