'Shop around for debt solutions'

People who may have overspent at Christmas may be interested to read that they should not bury their heads in the sand when it comes to their personal finance.

One in four people in the UK are finding their debt unmanageable, according to uSwitch.com, but by being aware of all the debt solutions out there, people in debt may be able to avoid having a solution "thrust upon them", Debt Help UK has said.

The debt advisory website stated that people should shop around for the best deal and seek debt advice to see what options are available to them, and the sooner the better.

Iain Wrenshall, director of Debt Help UK, said: "As your situation degrades, then your options generally become narrower and, ultimately, your creditors have the sanction to make that choice for you."

Taking out a loan in order to consolidate debts is a popular option among people in the UK, with three million people having taken them out, according to figures from uSwitch.com.

The consumer website also estimated that people could save money by getting a cheap loan, with the average UK household saving around £605 over three years.