Monday, June 6, 2011
Category:
Consolidation
According to Consumer Credit Counselling Service (CCCS), the UK’s leading debt charity, the average person who seeks help from them has to work until 4pm on Wednesday each week in order to earn enough money to repay their unsecured debts alone. These individuals then have the rest of the working week to earn the money that they need to meet their basic living expenses, such as their mortgage.
CCCS has revealed that they were contacted by 418,000 people last year, and they have highlighted the pressure that people are under when they are attempting to pay for living costs whilst also tackling their debts.
In 2010, the average person who contacted CCCS reportedly owed £22,476 worth of unsecured debt, such as overdrafts, credit cards and personal loans. The charity has pointed out that this is equivalent to a monthly bill of £675.52, purely to meet unsecured debt repayments. It has been reported that this figure represents 58 percent of the average CCCS client’s monthly earnings of £1,173.23 after tax.
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Homeowners whose finances are tight at the moment, due to juggling several unsecured debt repayments each month, could consider taking out a secured loan to tie these debts up. One of many finance options available, a secured loan for
consolidation could leave borrowers with lower monthly outgoings – thereby freeing up useful money 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.
