Friday, February 4, 2011
Category:
Consolidation
According to the fourth annual Post Office Consumer Credit Report, more than 11.5 million people turned to their credit cards to fund day-to-day living costs in January. In fact, it has been revealed that 43 percent of credit card users paid for their groceries with their credit cards.
It was reported that 10 percent of those who used their credit card in the first month of 2011 did so to get by during the extended period leading up to the January pay day. Furthermore, 11 percent reportedly used their credit card ‘to cover overspend on Christmas purchases’, whilst 33 percent turn to their credit card to see them through every month.
The Post Office’s research also uncovered that although 52 percent of credit card holders anticipate that their 2011 credit card expenditure will remain the same as it was last year, 7 percent are expecting it to be greater. It was found that 32 percent are expecting to spend an additional £100 per month on their credit card, whilst 17 percent are potentially looking at spending an additional £200 per month.
With regard to credit card repayments, it has been reported that 56 percent plan to pay off their bill in its entirety each month in order to avoid being charged interest. In contrast, it was found that 7 percent estimate that it will take them over three years to pay off their credit card debt. As a result, 39 percent reportedly admitted that they will need to be more careful when it comes to their 2011 budgeting.
It has been revealed that many credit card holders possess more than one card. Indeed, 20 percent of male credit card holders were found to possess at least three. On a geographical basis, the research uncovered that those living in London are most likely to carry more than one credit card, at 24 percent.
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Homeowners who are currently juggling several credit card repayments each month could consider tying these debts up with a
secured loan. One of many finance options available, a secured loan for consolidation could allow borrowers to replace multiple monthly debt repayments with a single monthly repayment. What’s more, this new monthly repayment could even be lower than the sum of existing outgoings, thereby freeing up extra 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.
