London ( Uk-loan-market ) January 08, 2007: After Christmas celebrations, many Britons have fallen into the debt trap. Almost 10,000 personal insolvencies have been found so far following the festivities.

Also, there is a prediction that almost 30,000 personal insolvencies would be there by the first quarter of 2007. This has been predicted by accountants Grand Thornton. This personal insolvency at one time was almost 100,000, the highest in the previous year.

According to Grand Thornton’s Mike Gerrad: "Since last Christmas, interest rate rises, sky-high utility bills and increases in unemployment have all contributed to pushing more people into financial trouble.

Average household debt in UK is around £51,400, including the mortgages. Free spending Britons owe a third of all debt in Europe.

A typical household can save a significant amount of money if the consumers review the finances in a proper manner.

Avoiding the higher interest rates on store debt cards and consolidating the debts into low cost personal loans can help in saving a huge amount of money. According to Alliance and Leicester, a consumer who has a debt of around £7500 can save as much as £1,500 by taking a loan at 5.95 per cent APR.

On the other hand, the store card charges interest up to 30 per cent. The huge difference in the interest rates shows the amount of money a consumer can possibly save with the help of a personal loan.


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