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Consumers 'actively reducing debts'

The recent furore surrounding the credit crunch has prompted many people to address their personal debt situation, a financial expert has stated.

Senior editor at Moneyextra.com Robin Amlot said that global credit problems combined with the run-up to Christmas have meant that British consumers are trying to exert greater control over their finances.

Mr Amlot stated that many people seem to be interested in establishing a "cheaper, more manageable basis" for their borrowing, with debt consolidation loans a very popular way of achieving this.

He commented: "Although the evidence of a consumer slowdown is mixed at this stage, retailers have already raised concerns that they'll face a tough Christmas.

"The credit crunch is already starting directly to affect consumers who are overstretched."

Debt management has emerged as the "key reason" for personal loan applications in recent years, Mr Amlot also said this week.

A recent survey by Thomas Charles debt consultancy found that one in four UK consumers will avoid credit card spending this Christmas as a result of financial pressures.

See how much you could borrow with a debt consolidation loan from Lombard Direct.

© Adfero Ltd

06/11/2007 17:11:52

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