UK, 30th January 2023: New analysis from Experian shows a 29% increase in searches for debt consolidation products year-on-year, suggesting that financially savvy Brits are reducing the cost of their borrowing with simplified payment plans and reduced interest rates. Searches for debt consolidation solutions are now the most common on Experian’s marketplace, ahead of home and car loans.
Month-on-month interest in debt consolidation products rose most sharply among those in their 50s (25% increase YOY). Searches among those in their 40s increased by 19%, followed by those in their 30s (16%). People in their 30s still account for the largest proportion of debt consolidation loan searches overall, at 21%.
Balance transfer cards, which can help people looking to save money on existing borrowing, were most popular with those in their 30s. This demographic recorded a 7% increase in searches month-on-month, the highest of any age bracket, compared to those in their 20s (5% increase in searches over the same time frame). Overall interest in balance transfer cards increased by 10% from December 2022 to January 2023.
There are currently 57 0% balance transfer card deals on Experian’s marketplace, with up to a maximum of a 30-month repayment period.(5)
James Jones, Head of Consumer Affairs at Experian said: “Our data suggests that people are looking at ways to take control of their finances and ease the squeeze on their purse strings. Those aged 40 – 60 in particular are increasingly searching for debt consolidation products. They often have families or dependants and are looking for ways to better manage their money by switching to products with a simplified payment plan and lower interest rate.
“0% balance transfer cards can be a good option for those looking to make more affordable repayments. People can reduce the amount they spend on interest by switching debts from existing cards. While there’s often a fee associated with the switch, you won’t need to pay interest for a set period, potentially as long as two years, meaning every penny goes towards lessening what you owe.
“If you’re struggling to repay credit or other bills, we recommend contacting a free debt advice service such as National Debtline, Citizens Advice or StepChange. The sooner you seek help the better, and talking to a debt adviser will not affect your credit score.”
Notes to Editors:
1. Experian compared search data on its marketplace, comparing data in January 2022 to January 2023. Analysis was undertaken looking at the percentage increase in searches year-on-year.
2. Analysis of product share on Experian’s marketplace was undertaken in January 2023
3. Experian compared search data for debt consolidation loans on its marketplace, comparing data in December 2022 to January 2023. Analysis was undertaken looking at the percentage increase in searches month-on-month.
4. Experian compared search data for balance transfer cards on its marketplace, comparing data in December 2022 to January 2023. Analysis was undertaken looking at the percentage increase in searches month-on-month.
5. Data taken from Experian’s marketplace in January.
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