Monday, April 2, 2007
Category:
Consolidation
News from MoneyExpert.com released in January reported that over a million missed bills were due during the first month of the year.
Extravagant Christmas spending and early December salary payments are linked to unpaid bills according to MoneyExpert.com research.
It was said that 1.145 million bills ranging from credit cards and mobile phones to utilities and council tax were likely to remain unpaid into February. Credit card bills are where people were most likely to struggle according to MoneyExpert.com who estimated that around 332,500 people would miss a repayment. Council tax was said to be the second most likely bill payment to be missed in January.
Other predictions for missed bill repayments include water, personal loans, telephone bills and broadband internet connections. The research from MoneyExpert.com shows that almost one in ten adults said they had missed a credit card repayments during the last year. On average, the charge for a missed repayment stands at £12 meaning that Britain collectively paid at least £47.8 million in fees on credit cards during 2006.
Sean Gardner, Chief Executive of MoneyExpert.com, said: ‘Money is always tight in January. Most of us struggle to come to terms with getting paid early in December plus heavy spending over Christmas. It’s a difficult time and this can naturally lead to some people missing a bill payment. Missing a bill might not seem a big deal but it won’t go away and often you’ll be charged with a fee or extra interest if you don’t pay up.’
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Homeowners having to juggle several credit card repayments each month, could consider consolidating these with a secured debt
consolidation loan. One of many options to clear credit card debts, a secured debt consolidation loan means that you’ll know the exact day and amount to be repaid each month. Secured debt consolidation loans can usually be repaid over a term to suit the borrower, from 5 to 25 years. In addition to consolidating multiple credit cards, homeowners could consider clearing any existing personal loans with a secured debt consolidation loan. When considering a secured debt consolidation loan to clear existing debts, it is however important to remember that repaying borrowing over a longer term may increase overall interest charges.
