Friday, July 17, 2009
Category:
Secured Loans
According to research by protection specialist Bright Grey, millions of children in the UK could become poverty-stricken if their parents were to pass away or become critically ill.
This news comes as a result of a survey, which established that 64 percent of parents do not believe that they have adequate financial protection in place for their dependent children.
The research also found that 15 percent of the parents questioned have never considered how their family would cope financially in the event of the worst happening. For one in ten, the expectation is that their children would utilise family savings. However, it is reported that the average daily saving stands at just £2.84, family savings could prove to be a short-term source of finance.
Bright Grey approximates that for under £20 a month, a man who will turn 30 on his next birthday could purchase cover to the value of £87,000. This sum would otherwise take more than a lifetime to accumulate based on the aforementioned average daily saving of £2.84.
Proposition Director at Bright Grey, Roger Edwards, commented: "People don't want to think about the financial consequences of themselves or their partner not being around, but it is one of the most important areas of your finances to get right, especially if you have a dependent family. It is worrying that so many families admit to not having sufficient protection in place, but are doing very little to address this.
"People might be shying away from sorting out cover because it seems a time consuming task or an expense they don't need at the moment, but the cost of life cover has been falling over the last few years."
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Homeowners who want to get their finances in line, especially those with multiple credit cards, store cards or personal loans, could consider taking out a
secured loan. One of many finance options available, a secured loan to consolidate debt could be used to tie up existing debts to avoid having to make multiple monthly repayments. The new, single repayment could even be lower than the sum of current outgoings – thus freeing up useful money each month. However, when taking out a secured loan to consolidate debt, it must be remembered that this may increase the amount you pay back overall and extend the repayment periods of your debts.
