Tuesday, January 30, 2007
Category:
Consolidation
Recent research from Abbey shows Britons believe they are managing their finances well, with 86 per cent stating they manage their finances well or very well.
Bank accounts are monitored at least once a week by 73 per cent and 63 per cent know all the transactions that are taking place on their accounts. When it comes to running out of money, 31 per cent claim that this is never a problem for them, while 54 per cent have to adjust spending to make sure this isn’t an issue.
Just 26 per cent are overdrawn, 60 per cent of whom are working hard to pay off debts. 15 per cent of Britons believed they were borrowing more on their overdrafts than two years before the research. Internet banking is used by 72 per cent of those surveyed by Abbey with 65 per cent arranging for direct debits and standing orders to come out of their accounts close after pay day.
People living in the Midlands and Wales are most confident about managing their finances while fewer living in Scotland are not so sure. That said, more of those living in Scotland arrange direct debits from their accounts after payday (70 per cent) and are the least likely to run out of money. Steve Shore, Abbey’s Head of Banking, said: ‘It is clear that modern British society is more confident about managing its finances. New technology, such as the internet, is empowering customers. While it is encouraging to see more and more people taking charge of their finances, many of us could do more. 18 per cent of people have never switched their current account and 57 per cent have had their present account for 10 or more years. This is despite the fact that some current accounts now offer more competitive interest rates to customers with the best rates offering up to 60 times better than the worst.’
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One option to consider in managing personal finances better is a debt
consolidation loan. A debt consolidation loan can be used to pay off multiple credit card balances, personal loans and overdrafts, wrapping several monthly repayments into one. Debt consolidation loans can be repaid over a term to suit you from 5 to 25 years. It is however important to remember that with a debt consolidation loan, repaying borrowing over a longer term will increase overall interest charges. With a debt consolidation loan, borrowers will know the exact amount and date payment will be taken from their account each month, reducing the need to juggle multiple repayments each month.
