Thursday, May 21, 2009
Category:
Consolidation
According to new research carried out by Fairinvestment.co.uk, 63 percent of Brits have found that their finances have become tighter since the onset of the recession.
Among this group, it has also been revealed that 10 percent are struggling to make their mortgage repayments and 7 percent have been made redundant.
The fact that 10 percent are finding their mortgage repayments a challenge would appear to be indicative of the extent of the problems posed by the ever-increasing cost of living. This is particularly the case at a time when average mortgage repayments have actually reduced considerably as a result of falling interest rates.
In advance of the 2009 Budget, Fairinvestment.co.uk has considered how Alistair Darling could assist those that are in financial difficulty by means of this Budget.
Chartered financial planner for the online finance portal, Sharon Bratley, remarked: "To make a real difference to these people, Darling would either have to make a significant reduction in taxes, guarantee all UK jobs, or hand out money on the streets to those who need it!
"Unfortunately the reality of this Budget will tell a different tale, and instead of helping people who are struggling to keep their heads above water, it is likely to add to their problems.
"Public debt and spending has spiralled out of control, and the only feasible way to end this is to increase taxes in some way, and whether it will be alcohol, petrol or cigarettes, any increase is bound to have an adverse affect on households.
"Measures expected to be announced include the extension of the stamp duty holiday for properties costing £175,000 or less, and the implementation of the Homeowner Mortgage Support Scheme (HMSS), both of which are temporary measures that will not solve the long term problems for struggling households.”
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Homeowners that are feeling the squeeze amid the recession could consider taking out a loan to consolidate their debts. Those that are juggling several, expensive monthly repayments for existing personal loans, credit cards and hire purchase agreements could consider a debt
consolidation loan as one of many options to consolidate existing debts. A debt consolidation loan could tie these up into one manageable, potentially lower, monthly repayment. When taking out a debt consolidation loan, it must be remembered however that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
