It`s emerged that more than a million people may plan to cover the cost of Christmas with payday loans, which is one option but debt consolidation could provide them with a much more long term solution to cash flow problems.

The Money Advice Service has indicated that 1.2 million people will opt for short-term options to pay for the festive season, which could lead to them getting some quite expensive payments back in the new year using a lot of their income up and leaving them tight for money in the New Year.

The government-run agency indicates that almost two-in-five (38 per cent) of us are worried about how they are going to pay for Christmas, with a third (34 per cent) resigned to the fact that they`ll start 2014 in debt because of the end of year blowout.

However, if you`re interested in a longer term solution to cash flow stresses, help could be at hand in the form of a debt consolidation loan or even a remortgage. This way you can bunch all your debts into one repayment with smaller monthly contributions. Due to the larger amounts involved and the increased flexibility, such as on your credit history these loans are usually secured on your home.

You pay less each month as your repayments will be spread over a longer period, although you should bear in mind that you will end up paying more in interest payments as a result.

Discover more about debt consolidation loans by enquiring at firstchoicefinance.co.uk or by calling us for free from a landline on 0800 298 3000 or from a mobile on 0333 003 1505.