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Lenders traditionally see an increase in activity after Christmas as Brits begin to face up to their festive spending.
An over-adventurous Christmas and New Year period can leave you facing hefty bills in January and February.
As a result, many people turn to debt consolidation loans to avoiding slipping into the kinds of problems that could have a long-term effect on their credit history.
"There are traditionally more loans after Christmas," admitted Tracy North, spokesperson for the high street lender Abbey. "This is often for debt consolidation at the beginning of the year to get everything in order.
"With loan rates so low, it does appeal to a lot more people," she added.
At 4.5 per cent, the base rate of interest remains historically quite low, encouraging more people to borrow.
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Juggling your finances key to avoiding debt
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