Wednesday, September 14, 2011
Category:
Secured Loans
According to Consumer Credit Counselling Service (CCCS), energy price increases are having an impact on ‘struggling debtors’. The leading debt charity has revealed that nearly a third of people are already in fuel poverty when they make contact.
In fact, figures have shown that in the first half of the year, 19,437 of those who sought help with their debts were in fuel poverty. It has been reported that their average combined gas and electricity bill stood at £136 per month. This is regarded as a ‘significant chunk’ out of debtors’ average net income, which reportedly stood at of £847 per month.
It has been revealed that on average, these CCCS clients were £302 short of the monthly sum required to meet basic living expenses. ‘The burden of their energy bill’ has been cited as one of the reasons for this. The consequence of this shortfall is reportedly an inability to repay debts, which has left these clients with an average unsecured debt of £15,759. The charity has warned that if bills continue to rise then this £302 shortfall could increase even further.
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Homeowners whose finances are tight at the moment due to juggling expensive unsecured debt repayments each month could consider taking out a
secured homeowner loan. One of many finance options available, a secured homeowner loan for consolidation could allow borrowers to tie up their existing debts into one manageable monthly repayment. This single monthly repayment could even be lower than the sum of current outgoings – thereby freeing up useful money each month. 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.
