London UK, 25 November 2025: Millions of UK consumers could save an average of £1,257 each year by consolidating unoptimised debt, according to new Experian research. As the UK braces for the Autumn Budget this week and with Christmas spending adding seasonal pressure to household budgets, new research reveals that wider adoption of debt consolidation technology could unlock £15.1 billion in household spending and generate £2.1 billion in extra savings annually through reduced interest costs.
Currently, 83% of UK borrowers (34 million people) carry revolving credit that isn’t optimised – meaning they’re paying more interest than necessary. Having multiple lines to manage and budget for increases stress, probability of missing payments and for some - entering a debt spiral. Debt consolidation could reduce monthly outgoings, simplify repayments, and help people regain financial control. Debt consolidation is also the most common reason people search for loans on Experian’s Marketplace, showing just how many people could benefit from better support.
To address this, Experian integrated ReFi™, an innovative debt consolidation technology, into its Marketplace. Unlike traditional consolidation loans, ReFi™ generates final settlement balances and pays off existing debts directly with creditors, so lenders assess only the new loan – removing the issue of ‘double counting’ and enabling them to make offers to customers they previously would have declined - improving access to affordable credit. Some lenders have seen a 68% increase in successful debt consolidation loan applications as a result of ReFi technology, highlighting the scale of the positive impact so far.
For consumers, this means real financial benefits: an average annual saving of £1,257 per person on interest charges, potentially lower monthly payments and reduced financial stress. On a wider scale, more than £15 billion could be added to the UK economy through the reduction of these interest charges if there’s widespread adoption of ReFi™. At the same time, it could potentially boost household savings by £2.1 billion per year.
Experian’s partnership with Fair4All Finance, backed by a £1million grant, will expand access to ReFi™ and affordable credit. The initiative aims to reach 10,000 borrowers initially, saving them over £50 million in unnecessary interest charges.
Edu Castro, Managing Director of Experian Consumer Services UK&I said: “We’re committed to helping people take control of their finances. Technologies like ReFi™ make it possible for millions to pay less interest, simplify repayments, and ease financial pressure. Our partnership with Fair4All Finance also strengthens this mission, enabling us to reach more people who need affordable credit and real support."
Kate Pender, CEO of Fair4All Finance said: “We’re delighted to be working with Experian on their ReFi ™ technology and also with the lenders who use it to reach people in financially vulnerable circumstances. With millions of people financially excluded in the UK, fair and affordable credit is a vital safety net that many can’t access.
Debt consolidation lending in particular is a great solution for the cost of living crisis. It can reduce people’s monthly outgoings and also cut the amount of interest they have to pay overall. This direct settlement technology will ensure more people are able to access a consolidation loan, improve their creditworthiness and steer clear of problem debt.”
Since its launch on the Experian Marketplace in early 2025, ReFi™ has already helped thousands of consumers save thousands of pounds in interest and reduce monthly outgoings.
ENDS
Note to Editors
1. Calculated by multiplying 34 million (the eligible population) by the penetration rate (40%) which equals to 13.6 million. Then dividing 17.1 billion by 13.6 million which gives £1,257 per year.
2. £17.2 billion calculated by working out how many households could be eligible to use ReFi™, which is 40% (penetration rate) of the eligible households (84%) that hold unsecured credit with a balance and then using Experian and Bank of England data to work out their average debt balance.
That figure was used to calculate an average interest saving that could be achieved with ReFi™ technology. With that figure in place, the proportion of the savings that households were likely to allocate to spend on consumption was calculated. This is called the marginal propensity to consume (MPC).
By multiplying the MPC by the interest saved for the households that are estimated to be eligible for ReFi™, we reached the £15.1 billion increase in spending figure. Using the MPC figure and the total interest saving figure, additional household savings can also be calculated, resulting in the £2.1 billion boost for household savings.
Media contact
Eliza Odire-Boadi, Consumer PR Manager, Experian UK&I
Tel: 07816192572 / Email: eliza.odire-boadi@experian.com
About Experian
Experian is a global data and technology company, powering opportunities for people and businesses around the world. We help to redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions, and gain deeper insights into the automotive market, all using our unique combination of data, analytics and software. We also assist millions of people to realise their financial goals and help them to save time and money.
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