According to Sainsbury's Finance, during the first quarter of 2011, up to 139,000 personal loans worth as much as £1.55bn could be taken out to consolidate debts.

This, as the supermarket bank said, will work out at around 35% of the value of all personal loans taken on during this period.

It said that the first three-month period of any year can be a popular time for people to consolidate thier debts using a loan. However, its research revealed that many people fail to shop around for the best rate before taking out a debt consolidation loan - with one in three taking out the first loan they are quoted for.

Head of loans at Sainsbury's Finance, Steven Baillie, said: "Taking out a loan to consolidate disparate debts from previous loans or credit cards can save a significant amount of money in terms of monthly outgoings, especially if you have debt with store credit cards which can have extremely high APRs."