Monday, May 21, 2007
Category:
Consolidation
According to the latest Personal Credit Index survey from CreditExpert.co.uk, the online credit report monitoring service form Experian, has found that approximately 6 million Brits would only start worrying about their debts if they passed £15,000.
It seems that growing interest rises are having no effect on borrowers’ confidence as people are becoming more comfortable than ever with high levels of debt.
A further 1 in 20 would only be concerned with their level of debt if it exceeded £50,000. Even though there is a growing acceptance of debt it is still considered a major social taboo for many. One in five cited bankruptcy as their most socially embarrassing life event, and one in ten cited getting into debt. It seems that financial situations are considered far more embarrassing for Brits than being involved in an illegal crime involving drugs or getting divorced which feature further down the list.
Findings from CreditExpert’s Personal Credit Index show consumer confidence reaching an annual high with a three point rise in the last quarter to 100. This figure was last seen in April 2006. Seasonal changes could be accounted for this rise in confidence, as longer days and two council-tax free months could leave many homeowners in a peaceful state of mind.
Jim Hodgkins, Managing Director of CreditExpert.co.uk says “The fact that so many Brits are happy with unsecured borrowing of at least £15,000 may seem shocking on first sight, but the ‘credit comfy’ generation seems to have become anaesthetized to the real implications of mounting debt. While many still see big debt as socially unthinkable, the reality is that an increasing number are finding it difficult to gauge when debt tips over to being unmanageable. With the current rise in interest rates, many will find that debt they blithely ignored is in danger of spiraling out of control.”
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Homeowners who are finding that their debt is escalating out of control, with multiple monthly credit and store card payments could benefit from taking out a debt
consolidation loan. One of many options available to consolidate debt, a debt consolidation loan will move all existing debt into one straightforward, convenient monthly payment, made payable over a term to suit the borrower from 5 to 25 years. With a debt consolidation loan, knowing when your monthly payment will be leaving your bank will allow for homeowners to plan ahead safe in the knowledge that they will not be piling up late fees. Homeowners taking out a debt consolidation loan should realise that repaying borrowing over a longer term may increase overall interest charges.
