Thursday, July 20, 2006
Category:
Consolidation
Research conducted by market analysts Mintel in December 2005 suggests that the UK is gripped by a borrowing culture.
Currently 21 million consumers have outstanding debts on credit cards and loans excluding mortgages.
Mintel’s research found that a quarter of borrowers have debts below £500, while 13% of borrowers owe in excess £10,000. The majority of those owing over £10,000 show little concern about their level of debt and some might consider borrowing more.
The most common form of borrowing is on credit cards with 29% of individuals surveyed having an outstanding balance. An additional 6% had an outstanding store card balance. The vast majority of borrowers are comfortable with their financial situation and feel that they are in control.
“While many people in debt may have the means to continue meeting their repayments, the high levels of debt and lack of worry does clearly represent a cause for concern.” Said Paul Davies, senior finance analyst at Mintel.
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For those people who are concerned about multiple debts, one option could be to consider
consolidating all their debts in one place with a secured loan. It is however important to remember that repaying borrowing over a longer term increases overall interest charges.
