Friday, January 15, 2010
Category:
Consolidation
According to credit action, the sum of personal debt in the UK stood at £1,459 billion at the end of November 2009, which represented a 0.7 percent increase across the preceding twelve months.
In relation to total lending in November 2009, findings show that this increased by £1.1 billion, whilst secured lending rose by £1.5 billion in the same month. Furthermore, it has been revealed that total consumer credit lending to individuals stood at £227 billion at the end of November 2009, with the annual growth rate continuing to fall to minus 0.5 percent.
The report shows that the average household debt in the UK – not including mortgages – stands at £9,016. When taking mortgages into account the figure increases to £57,888, with the average individual’s debt at £30,226. This figure is equivalent to 133 percent of average earnings.
At the end of November 2009, the average UK adult had reportedly borrowed £4,708 via credit cards, motor and finance deals, overdrafts and unsecured loans.
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Homeowners who have accumulated several debts in the past could consider taking out a
secured loan to tie them up into one place. One of many finance options available, a secured loan for debt consolidation could allow borrowers to replace multiple monthly repayments with just one manageable repayment each month. Moreover, 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 period of your debts.
