Monday, February 21, 2011
Category:
Consolidation
According to a quarterly survey conducted by R3, 43 percent of respondents are expecting their financial situation to worsen during the course of the next six months. This reportedly marks a 13 percent increase on the last quarter.
In contrast, the insolvency trade body’s research also revealed that 24 percent of respondents are expecting their financial situation to improve during the course of the next six months.
Steven Law, R3 President, commented: "Since we last carried out the survey, people have seen a rise in the cost of living, from the VAT increase; to the rise of fuel and utility costs. This has happened against a backdrop of pay freezes, pay cuts and, in some cases, redundancies, so it is understandable that many are feeling pessimistic about their financial outlook."
R3’s findings have shown that in the last quarter there has been a 6 percent increase in the number of respondents who are concerned about their current level of debt. It was found that 45 percent are now worried about their level of debt, with 56 percent ‘expressing concern’ about credit card debt.
When it comes to generational differences, the survey revealed that younger people are more inclined to worry about their debts. It was discovered that 57 percent of those between 25 and 34 years of age are concerned about their debts, compared to just 20 percent of those aged 65 and over.
Steven Law added: "In my experience, most people's debts become unmanageable due to a change in circumstance, such as sudden unemployment. This no doubt accounts for the generational split with regards to debt worries. In these uncertain times, for many of those of working age there is a real fear that if they do suddenly lose their job they will struggle to keep up with their debt repayments."
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Homeowners who are currently juggling several credit repayments each month, such as credit card bills and personal loans, could consider taking out a secured loan to tie them all up into one place. One of many finance options available, a secured loan for
consolidation could reduce multiple monthly debt repayments down to just one. What’s more this new monthly repayment could even be lower than the sum of current 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.
