Friday, August 12, 2011
Category:
Consolidation
According to R3, 47 percent of individuals are ‘concerned about their debts’. Compared to this time last year, there has reportedly been a seven percent increase in the level of concern regarding debts.
The insolvency trade body has also revealed that credit card debt is continuing to put the most fear into those who are concerned about their debts, at 53 percent, which marks a 5 percent increase from the previous quarter. Furthermore, R3’s Personal Debt Snapshot has uncovered that concern about payday loans, or alternative short-term loans, has increased by two percent this quarter. In addition, findings have shown an increase when it comes to concerns over hire purchase and store cards, at three percent and one percent respectively. In contrast, there was reportedly a four percent decrease in concern regarding secured lending such as mortgage repayments, and a two percent decrease in concern regarding bank loans.
When it comes to savings, R3 has revealed that 27 percent of individuals are setting less money aside than they usually do. This figure reportedly stood at 24 percent in July 2010 and 32 percent in April 2011. It has also been found that 21 percent of consumers are now delaying ‘big financial decisions’ compared to 14 percent twelve months ago and 28 percent last quarter.
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Homeowners who are concerned about their level of debt could consider taking out a secured loan for consolidation. One of many finance options available, a secured loan could allow borrowers to replace multiple monthly repayments with a single monthly repayment, which could be lower than the sum of their current outgoings. Homeowners who would like to work out their monthly secured loan repayments, could do so by using a
secured loans calculator. 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.
