It has been estimated that the largest number of people apply for debt consolidation loans in the month of January. This happens right after the Christmas shopping spree.

People use credit cards and store cards to make purchases during the Christmas and New Year holidays. In order to reduce their debt burden, they take out debt consolidation loansin the following month, i.e. January.

However, many people fail to take advantage of debt consolidation loans. They are not aware of the interest rate prevalent in the market. They take out consolidation loans at an interest rate higher than what they could have got.

According to Sainsbury’s Bank, more than 150,000 people in the UK will take out debt consolidation loans between January and March 2006. The Bank advises people to shop around before applying for a loan and compare the interest rates offered by various lenders.