Monday, June 28, 2010
Category:
Consolidation
According to research commissioned by R3, 44 percent of individuals who ‘freely admit to struggling with their debt’ do not believe that their problem is significant enough to require assistance; therefore they have not set about seeking advice.
R3 President, Steven Law, said: "It is worrying that individuals are not seeking professional advice at the first signs of financial difficulty because they don't think their problems are severe enough. While it may be the case that these problems are resolved without help, there is a risk that they might snowball out of control. Professional advice does not mean immediate bankruptcy. It could simply result in advice on budgeting."
R3 has estimated that almost 1 million struggling debtors have not tried to find help. The research revealed that for 9 percent of people this is down to a fear of bankruptcy. It was also found that 14 percent are concerned about what others would think; whilst 11 percent are worried about the impact that it would have on their family.
Steven Law added: "It would seem that many of the individuals who need financial advice are burying their head in the sand. Unfortunately, refusing to acknowledge your financial troubles won't make them disappear. The sad thing is, the longer someone takes to get help the fewer options will be available to them. If individuals leave it too late to seek help, bankruptcy may be their only choice.
"If someone seeks help early they will be able to take stock of their finances and will be on their way to attaining peace of mind. They may also avoid going into a formal insolvency procedure."
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Homeowners who may be struggling to juggle multiple debts, such as monthly credit card bills, could consider taking out a secured loan to tie these debts up in one place. One of many finance options available, a secured loan for debt
consolidation could leave borrowers with just one monthly repayment, which could even be lower than the sum of current outgoings. Borrowers could therefore be left with more money in their pocket each month, to save as they see fit. 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.
