A study carried out by Halifax indicated that January is the month which sees the most UK personal loans taken out - at a rate which is almost double that recorded during other times of the year. In addition, findings from the financial services firm revealed that the proportion of loans applied for to consolidate other debts is at its highest at the beginning of the year. Once again January was pointed out as being the month where UK consolidation loans are the most sought after "by far".



Statistics from the company also indicated that younger Britons are likeliest to apply for a cheap consolidation loan. Those between the ages of 20 and 29 were shown to be likeliest to go for this type of borrowing, "closely followed" by 30 to 39-year-olds. Furthermore, men are expected to take out loans for debt consolidation more often than women, at all times of the year.

Neil Chandler, head of Halifax Unsecured Personal Loans, claimed: "For many people, the start of the year is a time to get personal finances in order - transferring debt from more expensive products such as store cards or other loans.

Our research shows that this is certainly the case, with the number of loans taken out for debt consolidation increasing. Using an unsecured personal loan for debt consolidation means you have just one fixed monthly payment for all your debts making it easier for people to manage their finances."

The Halifax expert also pointed out that "more and more people" are now choosing to organise their money by weighing up various financial offers and schemes using a price comparison website and applying for goods via the internet.

He stated that taking out monetary products through the web, which could include online loans, can be done at any time of the day and is quick to do. "This convenience and greater access to the internet means that this trend is set to continue," Mr Chandler said.

For people concerned about their capacity to manage their money as 2008 progresses, applying for a consolidation loan could be of assistance. In taking out this type of loan, borrowers can converge a number of constraints on their spending, for instance credit and store cards, mortgage repayments, utility bills and any previous loans, into a single low-cost repayment, which could leave them with more disposable income at the end of the month.

A debt consolidation loan could be of help to younger Britons after a recent Halifax study indicated that those between the age of 20 and 29 are struggling with money management. According to the Yorkshire-based financial services provider, the typical person in this demographic is more than 6,330 pounds in the red through UK loans, overdrafts, plastic cards and other types of borrowing, the Daily Mail reports. With an average salary of around 14,000 pounds young people who are in debt think that it will take them about four and a half years to get back into the black.

For consumers looking for an effective way to get into a positive financial situation, a low cost debt consolidation loan could be of assistance.