New analysis from Experian has revealed the scale of unnecessary interest payments facing UK consumers, with unoptimised credit costing households an estimated £17.2bn each year.
The findings come at a time when families are preparing for the Autumn Budget and bracing for added seasonal pressures from Christmas spending. According to the research, adopting innovative debt consolidation technology could unlock £15.1bn in additional household spending and deliver £2.1bn in collective annual savings through reduced interest costs.
Experian found that 83% of UK borrowers – around 34 million people – hold revolving credit that is not optimised, meaning they are paying more interest than required. Managing multiple credit lines increases complexity, contributes to missed payments, and raises the likelihood of borrowers entering a debt spiral. Debt consolidation remains the most common motivation for consumers searching for loans on Experian’s Marketplace, reinforcing the widespread demand for better financial support tools.
To meet this need, Experian has integrated ReFi™, an automated debt consolidation technology, into its Marketplace platform. Unlike conventional consolidation loans, ReFi™ calculates final settlement figures and pays off outstanding balances directly with creditors. This eliminates the issue of ‘double counting’, enabling lenders to focus solely on the new loan and approve applications they may previously have rejected. Some lenders have reported a 68% rise in successful debt consolidation loan approvals since adopting ReFi™, demonstrating its early impact on credit access.
The consumer benefit is substantial, with average annual savings of £1,257 per person in interest charges and the potential for lower monthly repayments. Widespread use of ReFi™ could contribute over £15bn to the UK economy by reducing interest burdens and could help boost household savings by £2.1bn per year.
Experian’s partnership with Fair4All Finance aims to broaden access to affordable credit, supported by a £1m grant to reach the first 10,000 borrowers. The initiative is expected to save these individuals more than £50m in unnecessary interest.
Experian managing director of consumer services UK&I Edu Castro 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.”
Fair4All Finance CEO Kate Pender 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.”
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