The group state that there are fewer personal loans available now that there has been, as a result of the credit crunch the lenders are less likely to lend. It was claimed that the total approved borrowing on unsecured loans dropped by the huge sum of 13 million pounds last month. And with inflation still soaring like an albatross circling overhead as the UKs finances head towards glacial waters, many consumers are looking to plug the gap left by the shrinking personal loans markets by ramping up spending on credit cards. The price comparison site claims that during September, plastic expenditure rose by 130 million pounds.

However, uSwitch warned that people may be putting themselves at risk of some heavy financial blows by neglecting to use their credit cards wisely. They claim that interest rates charged by providers for cash withdrawals from credit cards has increased by 41 per cent. The group explained that the average annual percentage repayment for cash withdrawals now stands at 29.97 per cent, meaning that consumers are forking out an additional 161 million pounds in interest when compared to typical rates seen in 2005.

For those who have been struggling with their finances lately, they may find that taking out a consolidation loan may be useful in helping them reorganise their outgoings, and reducing their monthly expenditure.

However, head of personal finance at uSwitch, Simeon Linstead, claims that consumers should check all options when looking for a credit card provider.

"The credit card industry is always changing, and even the most switched on people could be forgiven for not keeping up with increased charges and changes made to terms and conditions. However, providers count on the fact that their attempts to safeguard their margins through subtle fees and charge increases will simply be met with confusion and apathy - not action. As consumers are likely to only start feeling the full impact of the global financial meltdown in 2009, now is not the time to be naive when shopping around for a new credit card or lethargic when it comes to reviewing existing borrowing," he said.

Mr Linstead explained that it is more important than ever to reorganise finances and seek out the most competitive arrangements, as economic indicators point towards a recession and a sustained period of belt tightening. He concluded by urging consumers to remember that the more that is spent on interest repayments, the less money can be put towards clearing debt burdens, something which will become increasingly important in the coming months.

For consumers looking for a way to reorganise their outgoings as money markets tighten and spending soars, taking out a debt consolidation loan may prove effective. Applying for this type of loan may be particularly useful for those who have found themselves stung by uncompetitive energy tariffs. Earlier this month, Confused warned that consumers are wasting millions because of a failure to switch suppliers.