People looking to consolidate their debts through a secured loan, in order to try and ease the monthly payments and hassle of dealing with multiple creditors, have more than likely already stretched their finances too far.

People entering into debt consolidation loan agreements are repaying an average of around 113 per cent of their salary, so spreading payments across a greater loan term with a secured loan could be a good option for some people. For most banks the number one reason for a secured loan is still debt consolidation.

However the average level of debt in the UK is around ?27,000 and the average age of people in debt is 43, split 42 per cent male and 58 per cent female. This means that it’s more than likely all these people have built up debts greater than their annual salaries, which is a dangerous financial position to be in.

Many people are being asked by the banks to repay around 70 per cent of their income and the reality is they can only afford 18 per cent, on average. With the financial hangover of January starting to bite for some people this is a completely unmanageable situation whichever way you look at it.

Those people who simply cannot afford to make repayments no matter how much they cut back really should seek professional debt management advice. For those of us who still have control of our debts it’s surely a warning sign; get control and start reducing your debts before they’re totally out of control.