Saturday, January 8, 2011
Category:
Consolidation
According to new research commissioned by Gocompare.com, when it comes to the twenty most common financial products, 25.9 percent of respondents have never switched any of them. This is reportedly equivalent to 12 million UK consumers never having switched products such as car insurance, energy provider or credit card.
Nevertheless, the research also uncovered that 61 percent of consumers are anticipating that 2011 will be a ‘very difficult year financially’ and 81 percent are hoping to save money. The most significant financial worry for the year was found to be bills and the rising cost of living, with 10 percent of respondents admitting that it was probable that they would have to seek financial assistance from their friends and family in 2011.
Findings show that some consumers are being proactive in their attempts to save money by comparing financial products and switching from uncompetitive providers to those that offer better value for money. For example, 31 percent of consumers have reportedly switched from one car insurance provider to another in the past year.
However, only 14 percent of consumers were found to have switched their credit card balances in the past year. According to Bank of England figures, in October of last year UK credit card debt was in the region of £58 billion, whilst the average credit card interest rate stood at 16.68 percent.
Business development director of Gocompare.com, John Miles, commented: "4 out of 5 Brits are hoping to save money this year but unfortunately insurers, energy providers, and lenders aren't in the habit of voluntarily giving better deals to loyal customers so it's up to consumers to shop around. Thankfully comparison sites now make it easier than ever to quickly compare and switch a wide range of financial products so if consumers have access to the internet a few minutes spent managing their money could save them a packet in 2011."
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Homeowners who are faced with expensive credit card bills each month could consider tying them all up into one place with a secured loan. One of many finance options available, a secured loan for
consolidation could reduce multiple monthly debt repayments down to just one. This single monthly repayment could even be lower than the sum of current outgoings – thereby freeing up useful money each month, which could potentially be set aside for a rainy day. 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.
