Wednesday, July 5, 2006
Category:
Consolidation
Too many Britons are failing to consider their finances, instead worrying about matters which they cannot control, it has been claimed.
New research has suggested that many Britons spend time worrying about matters which they can have little influence on, when instead they should be looking into ways to clear their debt. According to a study carried out by Prudential, not enough people are looking at the debt that they are in and are spending more time worrying about things they are unable to control.
Other factors preying on consumers' minds are the threat of so-called superbugs, which have caused havoc in some hospitals, as well as the danger of a terrorist attack. But Paul Cowman, head of protection at Prudential, points out: "You're far more likely to lose your job and struggle with debts than be a victim of terrorism or superbugs."
Mr Cowman added: "An age of fear is gripping the country and it is entirely irrational."
While people are becoming increasingly concerned about issues such as bird flu and security, many are becoming more relaxed about their finances, despite the high levels of consumer debt in the UK. There is concern that the public is failing to properly look into solutions to their financial difficulties and as such may be overlooking the possibility of taking out a debt consolidation loan that could significantly ease the burden of debt.
Dr Peter Marsh, of the Social Issues Research Centre, commented that people today "lose a proper focus on risk and get diverted away from real threats", such as financial insecurity, which could cost a person their home. It is therefore important that people focus on things in their lives which they are able to influence, such as personal debt.
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One way of controlling rising personal debt would be to consolidate it into a
secured homeowner loan. While this is only one option, it allows for the possibility of reducing monthly payments on debts, as the loan repayments can be made over a longer period of time. It is however important to remember that repaying your borrowing over a longer term will increase your overall interest charges.
