Monday, December 7, 2009
Category:
Consolidation
According to money.co.uk, 30 million British adults are likely to commence the New Year with a collective £8 billion dent in their household finances.
Despite the discovery that 31 percent of British adults are concerned about how they will afford Christmas, it was also found that 71 percent will finance this period with the money that is available to them at the time. Furthermore, it was uncovered that 14 percent will turn to credit cards, whilst 10 percent will utilise their savings. Findings also showed that just 15 percent made attempts to spread the cost throughout the year, and 10 percent are still in the process of repaying the money that they borrowed last Christmas.
It is thought that the trend of leaving Christmas shopping until the last moment could result in an approximate outlay of £500 per household on food and gifts – more than the average weekly disposable income of £164 per family. Therefore, money.co.uk has anticipated that households will experience even tighter finances as the New Year commences.
The research revealed that some people are intending to keep Christmas expenses down. In fact, 43 percent plan to reduce the amount spent on presents, 31 percent are only planning to purchase gifts for close family members, and 14 percent plan to recycle presents that they don’t want. However, last year’s ‘good intentions’ were apparently not carried out when the Christmas countdown was in full swing. Such plans may again be subject to change, with 62 percent not wanting the recession to spoil ‘the magic of Christmas’.
Chris Morling, managing director, money.co.uk said: "There is no reason at all why families across Britain should not have a wonderful Christmas this year, but you have to worry about the effect all this last minute spending will have in January. Lots of people are likely to be very short of cash going into the New Year, which would not make for a great start to 2010."
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Homeowners who have had to turn to credit cards or personal loans in the past, and are now faced with multiple monthly repayments, could consider taking out a secured loan to tie these debts up. One of many finance options available, a secured loan for debt
consolidation could leave the borrower with a single monthly repayment as opposed to juggling several. This new monthly repayment could even prove to be lower than current outgoings. However, when taking out a debt consolidation loan, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
