Taking out an unsecured personal loans is most popular in January, according to research by the Halifax, which shows almost double the uptake compared to other months.

Head of unsecured personal loans at Halifax Neil Chandler explained that it could be because customers use the start of the year to get finances in order, which may interest those looking for cheap loans.

Mr Chandler added: "Using an unsecured personal loan for debt consolidation means you have just one fixed monthly payment for all your debts making it easier for people to manage their finances."

The research also showed that those between the ages of 20 and 29 were most like to take out a loan to consolidate debts.

Figures released by Engage Mutual show that the new year is also the most popular month for parents to open child trust funds, with the most popular time for one-off payments being March, towards the end of the financial year.