Monday, September 19, 2011
Category:
Consolidation
According to research from Moneysupermarket.com, one in four people are paying off non-mortgage debt with more than 40 percent of their wages each month. The comparison site has highlighted that a significant proportion Brits are therefore regularly ‘eating into their available income’, which consequently leaves them with less money to fund rising bills and increasing living costs.
The research also uncovered that on average, each person has £322 worth of monthly debt. This reportedly represents a quarter of the average monthly income of a UK adult (£1,288). Furthermore, it was found that eight percent of people admitted to spending more than 80 percent of their wages on debt repayments, which is thought to indicate just how stretched the nation’s finances currently are.
Excluding mortgages, findings have shown that on average men possess a larger proportion of personal debt than women, at £7,944 and £6,739 respectively. Nationwide, Londoners reportedly have the greatest level of personal debt on average at £8,478, whilst those living in Yorks & Humber owe an average sum of £5,796. However, findings have shown that paying off this debt only takes up 22 percent of Londoners’ wages, whereas those living in Yorks & Humber have to part with 28 percent of their wages to make debt repayments.
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Homeowners who are finding their finances tight at the moment – perhaps due to juggling several, expensive credit card repayments each month – could consider taking out a secured loan. One of many finance options available,
consolidation loans could allow borrowers to tie up their existing debts – thereby replacing multiple monthly repayments with just one. What’s more, this single monthly repayment could even be lower than the sum of current outgoings. 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.
