Wednesday, September 1, 2010
Category:
Secured Loans
According to a poll conducted by moneysupermarket.com, consumers are finding it necessary to ‘dip into their savings pots’ as the UK continues to feel the effects of high inflation. In fact, it was revealed that 56 percent of respondents have turned to their savings without planning to. Furthermore, 26 percent reportedly claimed that they would do the same if they found themselves needing the money.
Site editor at moneysupermarket.com, Clare Francis, commented: "The official rate of inflation slowed last month but at 3.1% it is still well above target and with the Base Rate remaining at 0.5 per cent, Brits still face an uphill struggle as they try to generate value from their savings at the same time as they're battling rising living costs. It seems as though an increasing number of people are being forced to dip into their savings just to make ends meet. Not only does this underline the importance of saving, but it also highlights the value of earning the best possible return on your money.
"Poor savings rates coupled with rising living costs are really squeezing British families and whilst generating more income on savings is important, people should be doing everything they can to lessen the effects of the current economic environment.
"Before dipping into savings, it's worth exploring other options reducing the strain on family finances. Spending wisely, using discount vouchers and focusing on repaying any outstanding debts will all stand consumers in good stead, and help free up some extra cash to relieve the financial strain they are currently experiencing. It's well worth people trying to hold on to their savings and only dip into that money as a last resort. "
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Homeowners who are finding their finances tight at the moment, but do not have any savings to turn to, could consider taking out a
secured loan. One of many finance options available, a secured loan could allow borrowers to tie up any existing debts that may be proving expensive. For example, credit cards could be tied up with a secured loan for debt consolidation, which could leave borrowers with just one monthly repayment that is lower than the sum of current outgoings. This could leave borrowers with extra money each month, which could potentially be set aside in a savings account. 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.
