New research has found that the levels of saving in the UK fell in 2010 as consumers used their surplus funds to repay unsecured borrowing. The figures from professional advice website unbiased.co.uk discovered that over £12 billion of credit card debt was repaid last year; the highest level since the figures began in 2005.

Consumers using cash to pay low rate credit card debt

According to the research, repayments to credit card debt outstripped new lending for seven consecutive months to the end of 2010. The increase in repayments to credit card and unsecured debt was attributed to people wanting to reduce their debt in an uncertain economic climate as well as the fact that new borrowing was being restricted by banks.

The focus on repaying debt hit savings in the UK with levels falling from £20 billion during the first quarter of 2010 to just £15 billion in the final quarter.

0% credit cards are perfect for reducing debt

If you are planning to reduce your unsecured borrowing in 2011, 0% balance transfer credit cards could be the perfect answer. These 0% credit cards allow you to transfer your unsecured debt on to a nil interest rate for a set period.

They help you to repay your debt faster, as you have no interest to pay during the introductory period.

Many websites feature a credit card calculator which will help you analyse your balance and work out how quickly you can repay your debt. And, with an increasing price war raging on 0% balance transfer credit cards, finding a low rate credit card is easier than it has been for some time.

Overall, Britons repaid 14p of debt for every £1 they saved during the three months to the end of December 2010. So, if you want to repay your debt faster, 0% credit cards could be the perfect answer.