Wednesday, June 8, 2011
Category:
Consolidation
According to R3, the number of people who are experiencing ‘financial distress’ has reached the highest level recorded by the trade body’s Personal Debt Snapshot.
It has been revealed that eight million people are due to go into their overdraft this month and that two million believe that they will go into an unauthorised overdraft position. Furthermore, the research uncovered that six million people are behind with some of their bills and payments at present, which represents an increase of two million during the course of the last quarter.
R3 has pointed out that keeping on top of bills and debt repayments has led to many people going into, and often exceeding, their agreed overdraft. As a consequence, bank charges are reportedly incurred in the majority of cases, which can cause debts to snowball.
Further findings include the fact that five million people are worried about redundancy. Nevertheless, 32 percent of respondents admitted that they are now saving less than they have done previously. This marks an eight percent increase on the previous quarter, which is reportedly equivalent to fifteen million people.
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Homeowners who are struggling to juggle multiple monthly debt repayments each month could consider taking out a secured loan to tie them all up. One of many finance options available, a
secured loan for consolidation could allow borrowers to replace several monthly debt repayments with just one. This single monthly repayment could even be lower than the sum of current outgoings; thus freeing up useful money each month. If desired, this extra money could be set aside in a savings account for a rainy day. 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.
