The credit crunch has caused many consumers to actively seek to reduce their debt, an expert has said.

Senior editor of Moneyextra.com Robin Amlot commented that the global climate has already begun to hit overstretched borrowers.

Many are finding it difficult to source credit while "others do appear to be actively attempting to reduce borrowings or shift them onto a cheaper, more manageable basis", he continued.

Mr Amlot said debt consolidation is currently the main reason borrowers take out personal loans, adding many retailers are anticipating a difficult Christmas.

Recent research by consultancy firm Thomas Charles shows 15 per cent of Britons are in serious debt, with men more indebted than women.

It found one in four Britons will avoid using their credit cards to fund Christmas and 42 per cent of those aged between 18 and 34 will try to limit their social and entertainment spending.