Tuesday, January 25, 2011
Category:
Consolidation
According to new research by The Co-operative Insurance and housing and homelessness charity, Shelter, 28 percent of ‘struggling Brits’ are finding that their monthly outgoings are greater than their income.
The research, which was conducted by OnePoll.com and involved a survey of 3,000 UK respondents, also revealed that the cost of outgoings has left 26 percent of UK adults unsure as to whether they can pay their bills on time. Furthermore, it was found that 70 percent are concerned about their cash flow – particularly those between 25 and 34 years of age, at 74 percent.
Additional findings reportedly included the fact that increasing housing and living costs are resulting in risk-taking as people go without ‘essential items’ to get by, such as home insurance. The research uncovered that 22 percent of respondents do not feel that having home contents insurance is important, despite 80 percent admitting that they would not be able to afford to replace expensive items without this cover.
Head of Home Insurance at The Co-operative Insurance, Lee Mooney, commented: "The results of our research with Shelter highlight the extent to which people are now feeling the pinch and show that a large number of people are struggling to keep their household budgets in balance."
"Although times are tight and the vast majority of people don't have spare cash, it's important people prioritise what they need above what they want in the year ahead. It's worrying to see that such a high proportion of people don't think having home insurance is important, as without it they could be left open to serious risk and further unaffordable expenditure in the long run."
Recent research from Shelter reportedly revealed that more than two million people are now resorting to utilising their credit cards in order to meet their rent or mortgage payments.
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Homeowners whose finances are tight at the moment could consider taking out a secured loan to free up some of their monthly income. For example, one of many finance options available, a secured loan for
consolidation could be used to tie up any existing debts, such as credit cards and personal loans. In taking this approach, borrowers could be left with a single monthly repayment that is lower than the sum of their current outgoings. 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.
