Monday, December 28, 2009
Category:
Secured Loans
According to Alliance Trust, this month’s official inflation report revealed that November saw the headline rate of inflation rise from 1.5 percent to 1.9 percent.
However, the inflation rate affecting each group was found to be higher than this; particularly for 50 to 64 year olds and 30 to 49 year olds at 2.8 percent. This equates to being 47 percent greater than the official rate, and could be attributed to high inflation in transport costs, education fees and second hand cars. In contrast, those over the age of 75 are reportedly facing the lowest rate of inflation for the second consecutive month at 2.3 percent.
Head of the Alliance Trust Research Centre, Shona Dobbie, commented: "As expected, inflationary trends have increased quite sharply this month, reflecting recent increases in petrol and food prices. These price moves are having the greatest impact on the two working age groups, who spend a larger proportion of their budgets on the goods and services which are seeing high price increases. The fact that the working age groups face an inflation rate of 2.8%, but average earnings have grown by only 1.2% over the last year, highlights the erosion of their purchasing power."
Further findings include the fact that utility price inflation is still negative, sitting at minus 6.7 percent this month. Furthermore, electricity price inflation (at minus 8.2 percent) and gas price inflation (at minus 5.9 percent) have both remained constant. In addition, the report showed a continuing deflation in prices for clothing and audio-visual goods.
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Homeowners who are finding their finances tight at the moment could consider taking out a secured loan to re-organise their finances. A
secured loan for debt consolidation is one of many finance options available and could be used to tie up any existing credit cards and personal loans for example. In taking this approach, borrowers could replace multiple monthly repayments with just one. This single monthly repayment could even be lower than current outgoings. However, when taking out a debt consolidation loan, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
