Tuesday, April 24, 2007
Category:
Consolidation
Recent news from Alliance and Leicester has revealed that those in their early 30s have the highest borrowing of any age group and also have a tendency to miss repayments.
In their latest Borrowing Monitor research, the Alliance and Leicester showed that people in their early thirties actually have the highest borrowing including their mortgage than any other group.
In addition to having the highest mortgage exposure, their unsecured debts are averaging £5,863 which is 29% above the national average. At this age, people typically settle down and purchase their own home with their partners, therefore it is possible that high borrowing is a reflection of setting up home.
People in their early thirties not only have the highest debt levels, but are also amongst the most likely to miss repayments. They are also likely to have personal loans and also most likely to miss monthly loan repayments.
Chris Rhodes, Director of retail banking at Alliance & Leicester said: “The early 30s are a transitional age where careers are taking off and before family responsibilities kick in. Many are buying their first homes at this point, but are also enjoying rapidly rising salaries and are keen to enjoy life to the full. Some, particularly those not trying to get on the housing ladder, may find themselves in financial difficulty as a result living beyond their means. The picture for the under 30s is dominated by student loans. A hangover of student debt is constraining their appetite for other borrowing and delaying their ability to get on the housing ladder.”
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Homeowners in their thirties who find it difficult to keep track of what needs to be paid and when, could consider consolidating existing credit cards and personal loans with a
secured loan. One of many options to consolidate debts, a secured personal loan will put all debts into one place. Borrowers will know the exact repayment date and amount that will be taken for their secured loan each month, and will not need to worry about what needs to be paid and when. Secured loans can be repaid over a term to suit the borrower, from 5 to 25 years. When taking out a secured loan to consolidate existing debts, it is however important to remember that repaying borrowing over a longer term will increase overall interest charges.
