Monday, March 2, 2009
Category:
Consolidation
According to new research conducted by online payment provider, PayPal, it would seem that the current economic climate is having a negative effect on relationships nationwide.
In fact, 32 percent of couples revealed that they have been arguing more this year, primarily regarding finances and household chores. However, for 19 percent it is encouraging more open financial discussions, which should assist the 11 percent who have seen a switch in breadwinners during the past twelve months. In the case of 61 percent, this shift has been the unfortunate result of a job loss or pay cut, while a lucky 39 percent have attained a new job, promotion or pay rise.
Managing Director of PayPal UK, Carl Scheible, commented: "As the recession becomes reality, British couples are facing new challenges within their relationships. It's good to see that difficult times are prompting us to talk about money, as it's far easier to cope with financial worries when we're open with each other about them. It's also good to see that even in these uncertain times money is causing fewer arguments within couples in Britain than in many other countries, such as the United States and Australia."
Interestingly, PayPal’s research also revealed that 80 percent of UK couples now have separate bank accounts compared to 71 percent in 2008. In contrast, just 57 percent of American respondents possess separate bank accounts. The reason given by 13 percent of UK couples was to avoid the potential for more monetary fallings-out. For others (one in five), they simply do not want to be held responsible for their partner’s spending.
Carl Scheible continues: "Our research shows a big increase in people keeping separate bank accounts over the last year, as we try to keep control of our own money. We've also found that financial tensions tend to come to the surface once the ‘honeymoon' period is over, with over 90% of couples admitting they began arguing about money after they had been together for a while. This is perhaps an indicator that people wait until they feel settled with their partner before bringing up the sticky subject of finances."
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Couples who are currently finding their finances tight as a result of the difficult economic conditions could consider consolidating existing debts with a secured loan. A secured debt consolidation loan could be just the option for those homeowners that have been relying on credit cards and are subsequently juggling multiple monthly repayments. Several confusing repayments could be rolled into one potentially lower, repayment. Secured loans are usually available over a term to suit the borrower from 5 to 25 years, but it must be remembered that
consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
