Poor spending practices by Brits that lead to many consumers spending their money on luxury material possessions rather than clearing their overdrafts could spell an increase in the need for debt consolidation.

New research from IFA Promotion has shown that Brits are more likely to spend any additional money on luxury goods than on clearing their debts.

When questioned, respondents said that if presented with a 25% pay rise they would prefer to enjoy the money immediately, rather than put it away for retirement. Such attitudes could see many consumers weighing up the benefits of a debt consolidation package as a way of reducing their outgoings.

Commenting on the research, David Elms, IFA promotion spokesman, said "Despite well-documented and countless warnings that as a nation, we are not saving enough, it seems that people are yet to adopt a sensible savings mantra. And whilst the research is based on a hypothetical situation, it serves to highlight a very real problem in that people are too reluctant to forgo their spending to secure a comfortable financial future. People need to place clearing debt and saving much closer to the top of their list of financial priorities."

A well-suited debt consolidation package from a reputable company could provide a way to help consumers out of financial difficulties. It is however important to remember that repaying borrowing over a longer term will increase overall interest charges.