The credit crunch is to last beyond the festive season, it has been claimed.

Cathy Neal, senior researcher with consumer watchdog Which?, predicts that the tightened lending conditions and affordability issues faced by many Britons are to persist into the next 12 months.

In light of her comments, many people may be looking to address their financial situation with solutions such as debt consolidation loans.

"We're still feeling the fallout of the credit crisis, and I think we're still going to be feeling the repercussions into 2008," explains Ms Neal.

Meanwhile, she notes the benefits of using credit cards when purchasing Christmas gifts, as many come with protection, for example a refund or replacement guarantee for high-value mail order goods.

But she warns against using credit cards to obtain cash, as this is typically not subject to the same interest-free period as spending on the card itself.

Consumers who fall foul of such a distinction could turn to debt consolidation loans as a means of paying off their credit card balance in full.ADNFCR-1287-ID-18377098-ADNFCR

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