The bank says almost a quarter of Brits plan to swap financial products in the New Year in a bid to save money and pay off their debts.

An optimistic 15 per cent say they are planning to pay off their debts by the time Christmas comes round again next year.

Alliance & Leicester says the best way to pay off debt quickly is to consolidate it in a single personal loan. They not only help solve debt quickly, says the bank, but could save strapped-for-cash Brits over £1,400.

Claire Alvey, personal loans manager at Alliance & Leicester, said: “For many people, consolidating existing debts onto one low-rate personal loan will not only save them money, but it will also give them a disciplined approach to repayment, and an ‘end date’ for when their debt will be cleared.

“We all seem pretty keen on saving money and wanting those bargains in the New Year sales, but we need to use this same approach with our finances too – this is where significant savings can easily be made. These savings could make 2006 more financially comfortable.”

A survey by uSwitch.com found almost a third of Brits are still paying the price of Christmas in April.

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