Monday, January 3, 2011
Category:
Consolidation
According to first direct, ‘a large proportion of the population regret not taking a longer term view of their finances’. This comes following a survey of 1,000 UK adults, which uncovered that 53 percent feel that their biggest regret in 2010 was that they didn’t pay off debts more quickly. Furthermore, 37 percent reportedly stated that failing to set money aside for retirement earlier is their ‘biggest financial woe’. In addition, 18 percent of respondents were found to regret spending too much during the Christmas countdown.
The survey also shed light on the aspects of respondents’ finances that they are least happy with. Findings revealed that 82 percent are least happy about the amount of debt that they have on credit cards and loans. In addition, eight out of ten respondents reportedly admitted to not being happy with their pension provisions, whilst 76 percent stated that they are not happy with their level of savings.
Senior Savings Product Manager at first direct, Richard Brown, commented: "Ensuring that you plan ahead with your finances is extremely important, and starting to save for retirement as early as possible allows a better standard of living later on. The earlier you can begin to save for retirement, the more your money will work for you and acquire interest. Likewise, paying off debts quickly where possible prevents interest charges from rising and rising.
"The New Year is the ideal time to reflect on your financial habits and change these for the better. The earlier people start to plan their finances and look to the future, the easier they will find their long term financial position."
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Homeowners who are not happy with their level of credit card and unsecured debt could consider taking out a secured loan to tie these debts up into one place. One of many finance options available, a secured loan for
consolidation could leave borrowers with just one monthly repayment as opposed to juggling several. What’s more, this single monthly repayment could even be lower than the sum of current outgoings, thus leaving borrowers with more money each month. Homeowners who are displeased with their current savings pot may wish to set this extra money aside each month. However, if opting for a secured loan to consolidate debt, it should be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
