Wednesday, August 12, 2009
Category:
Personal Finance Tips
According to moneysupermarket.com, 54 percent of Brits have non-mortgage debt to the average value of £6,956.
In addition, it has been reported that 27 percent have increased their level of debt in the past 12 months, whilst 8 percent have increased their debt ‘a lot’ during this time.
Of those that have debts, 14 percent were found to be of the opinion that they will live their entire lives in the red. However, on a positive note, moneysupermarket.com also discovered that 40 percent of those owing money have lowered their non-mortgage debt in the past 12 months. Furthermore, 16 percent said that they are ‘in a lot less debt now compared to one year ago’.
Head of loans and debt at moneysupermarket.com, Tim Moss, commented: "Overall, this is positive news. It is encouraging to see that a good number of us are taking active steps to reduce the amount we owe. We have, over a long period of time, become too reliant on too much debt and correcting this was never likely to be an easy process.
"For those who have seen significant increases in their indebtedness over the last year, I would strongly encourage them to go through their household budget ruthlessly, line by line, and identify where outgoings can be cut. Those struggling to make their repayments must avoid the temptation to try to ignore the problem and should contact their lenders as well as one of the independent and free debt advice charities such as National Debtline or the Citizens Advice Bureau."
The research also revealed that more men (30 percent) than women (24 percent) have experienced an increase in non-mortgage debt. Additionally, 41 percent of women were found to be slightly better at reducing their debts than men at 39 percent.
Tim Moss concluded: "Anyone starting to worry about their financial situation shouldn't bury their head in the quick sand of debt - problems are easier to tackle when addressed early; those in their twenties and thirties should get into the habit of addressing their finances now to avoid financial difficulties later in life."
…………………………………………………………………………………………………..
Homeowners who are currently juggling several credit card bills each month could consider taking out a secured loan to
consolidate debt. One of many finance options available, a secured loan for debt consolidation could be used to tie up existing debts into one manageable monthly repayment. Not only could this new, single, monthly repayment be more straightforward but it could also be lower than current outgoings. However, when taking out a debt consolidation loan, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
