Saturday, January 31, 2009
Category:
Consolidation
Recent news from LV has revealed that 5.4 million children are aware of the credit crunch and its impact as we approach Christmas.
3.5 million children expect to have less money spent on them this year and 3.2 million children say that their parents spending habits have changed since the credit crunch came about. Nearly half of the teens surveyed said that they would work part time, or would consider working part time to help their parents out financially.
When it comes to Santa, almost a third of children have been thoughtful in asking for fewer presents from Father Christmas and their families this year. This could be down to the fact that two in 5 children (40%) have noticed changes in how their parents’ spend. Over a quarter said that their parents are spending less at the supermarket, and 13% said that parents are spending less on clothes for themselves. Some children even noticed that parents are spending less money on them, and that their parents were spending more time working than with them.
Mike Rogers, LV= Group Chief Executive, said: "Children are surprisingly clued up about the credit crunch and the impact it is having on Christmas and on family life generally. And many younger children who still believe in Father Christmas expect even him to be feeling the pinch this year.
"Once again this illustrates the importance of families saving as much as they can, not only towards Christmas but for the future generally. Putting by just a little and often can make a big difference in the long run and help everyone to look after what they love in life."
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As we enter a new year, some families may decide to make financial resolutions. If over the past year debts have been built up on credit and store cards, potentially homeowners could resolve to consolidate these debts with a
secured loan. Consolidating existing debts with a secured loan could lower initial monthly repayments, however it is important to remember that repaying borrowing over a longer term may increase overall interest charges. A secured loan is just one of many options to consolidate debt.
