Tuesday, March 15, 2011
Category:
Secured Loans
According to Consumer Credit Counselling Service (CCCS), in the months ahead many households will struggle to pay their debts due to job losses and reduced income from work.
The UK’s leading debt charity’s analysis of 470,000 households with debt problems – published in its Statistical Yearbook for 2010 – has caused concern that families will be ‘particularly vulnerable’. In fact, it has been reported that in 2010, households with dependent children needed an extra £650 per month compared to those without dependent children – purely to meet the everyday living costs.
Findings have also shown that homeowners have greater levels of debt than those who rent properties. On average a CCCS client who is a homeowner has in excess of £30,000 worth of unsecured debts in addition to their mortgage.
In 2010, 418,000 people contacted CCCS for help and the charity managed £289 million worth of repayments to lenders.
Lord Stevenson, CCCS chairman, commented: "The picture is undoubtedly bleak and it seems likely that many more families, including better-off ones, will be increasingly prone to over-indebtedness in the months ahead. It is also not a uniform picture across the country: public sector cuts in terms of jobs, spending and benefits will weigh disproportionately on certain groups of people. And as our new Debt View programme shows, the incidence of unmanageable debt bears down harder on specific parts of the country, such as London and Yorkshire.
"We hope that the unique and compelling data revealed in this Yearbook about what is actually happening in struggling households will assist policy makers to understand better the impact of their policies, as well as helping us to tailor our services to those who need it most."
……………………………………………………………………………………………….....
Homeowners who would like to re-organise their finances following a challenging financial period could consider taking out a
secured loan to consolidate any existing debts into one manageable monthly repayment. For example, one of many finance options available, a secured loan for consolidation could be used to tie up any expensive credit cards debts that have been accumulated to-date. In taking this approach, borrowers could be left with more 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.
