Tuesday, January 10, 2012
Category:
Consolidation
According to research commissioned by the Money Advice Trust, 2011 saw an increase in the number of people being helped by free debt advice agencies in the UK. In fact, this figure reportedly stood at 1.54 million last year, compared to 1.4 million in 2010.
Nevertheless, the charity has revealed that there is a much greater ‘latent’ demand for assistance. Findings have shown that approximately 10 million individuals, or 20 percent of the adult population in the UK, are constantly struggling to manage their debts. Furthermore, it is estimated that 2.5 million Brits are in arrears on one or more household bill, consumer credit product or payment.
The research, which was conducted by the University of Nottingham, is based on the Office for Budget Responsibility (OBR) economic forecasts and predicts that demand for advice on debts will increase sharply in the first six months of this year. It is believed that this is primarily due to rising unemployment and ‘stagnating wage growth’.
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Homeowners who are looking to re-organise their finances to start the year as they mean to go on, could consider taking out a secured loan to tie up any existing, expensive debts. One of many finance options available, a secured loan could allow homeowners to replace multiple monthly repayments with a single repayment. What’s more,
homeowner loans could consequently reduce borrowers’ monthly outgoings, thereby freeing up useful money each month. However, if opting for a secured loan to consolidate debt, it should be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
