Sunday, November 15, 2009
Category:
Consolidation
According to new research by Confused.com, 77 percent of those in their early 50’s are not concerned about the possibility of having their credit card applications turned down.
Their confidence is so great in fact, that 83 percent of individuals within this group have not checked their credit score for at least 12 months.
In contrast, it was found that 34 percent of those in their early 20’s are either refused credit immediately or following a referral. Confused.com points out that this could be the reason why virtually half of individuals in their early 20s do not submit credit card applications for fear of refusal or a ‘black mark’ against their name.
Head of credit cards at Confused.com, Joanne Garcia, commented: "Our research highlights the different spending habits between age groups. Approaches and attitudes differ, however the recognition in clearing credit balances must remain consistent. Those with existing balances should make every effort to clear them as soon as possible. Ignoring the debt, resulting in closure of an account by the credit card company is not advisable. This will have an adverse affect on a person's credit rating that will remain with them for a long time, creating difficulties for a range of things in the future.”
The research revealed that one in three individuals between 46 and 50 years of age do not maintain regular repayments on outstanding credit card balances. Consequently, Confused.com is urging those within this category to find a solution.
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Homeowners who have accumulated several credit cards in the past could consider tying these up with a secured loan for debt consolidation. One of many finance options available, a secured loan for debt
consolidation could leave the borrower with just one monthly repayment as opposed to juggling several. Furthermore, this single monthly repayment could even be lower than current outgoings – thus freeing up useful money each month. 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.
