In a study released by MoneyExpert, it was revealed that 14 per cent of Britons - about 6.5 million - have taken steps to reduce their levels of indebtedness during the past three years. The price comparison website indicated that young people are most likely to transfer debts accrued across a number of credit cards, loans and overdrafts to a single money lender. Just under a quarter (23 per cent) of those between the ages of 25 and 34 were shown to have moved all borrowing to one financial provider.

During the last three years, just under a third (30 per cent) of debt consolidation consumers have been looking to manage debts of up to 5,000 pounds, with a quarter of respondents aiming to handle between 5,001 pounds and 10,000 pounds in monies owed. Meanwhile, 16 per cent have consolidated between 10,001 pounds and 15,000 pounds. MoneyExpert also showed that one in five have debts of more than 20,000 pounds. Such consumers, it was claimed, are likely to use a cheap consolidation loan which is secured against their property.

Commenting on the figures, Sean Gardner, chief executive of MoneyExpert, said: "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. It is encouraging that so many people have taken action as you can make significant savings by moving all your debts to one place. With average standard credit card rates at 17.01 per cent compared to average unsecured loan rates of 8.44 per cent it is clear that borrowers can cut their monthly interest bill by moving."

He added that it is important for those taking out a consolidation loan to view it "as a wake-up call to get debts under control". Mr Gardner went on to report that such a loan should not be seen as something which can be taken out on a year-to-year basis to help borrowers supplement their spending.

Research from the financial services firm also revealed that an increasing number of people are looking to take out a secured loan. In the three months leading up to the end of October, applications for homeowner loans were indicated as standing at 22,848. However, between November and January such requests accounted for 42,229. This figure represents a rise of 85 per cent.

For those looking to get to grips with their money management, a debt consolidation loan could be of assistance. By taking out a low-rate loan for the purposes of consolidation borrowers may find that they are able to merge a number of demands on their spending into a single affordable monthly repayment. This may be of help for a significant number of consumers after a recent Co-operative Bank study indicated that 48 per cent of people are either "concerned or deeply concerned" in regards to how much money they owe, with four-fifths worried about their level of savings. The research also showed that women are more anxious about financial matters than are men.