Tuesday, February 15, 2011
Category:
Consolidation
According to new research from unbiased.co.uk, Brits will spend the first 45 days of 2011 working to pay off the interest that has built up on their debts before they can commence repaying the actual debt itself.
Therefore, Tuesday 15th February has been dubbed ‘Debt Freedom Day’ as it marks the day when borrowers will have paid off the interest compounded on their debts. This is reportedly calculated by dividing the average interest payment on outstanding unsecured loans and credit cards by the average person’s daily wage.
The professional advice website’s research uncovered that the sum of personal loans in the UK exceeded £120 billion last year, with £58 billion worth of credit card debts. It is thought that the ‘soaring levels’ could be partially due to high interest rates on credit cards. In fact, it has been revealed that last year’s average rate stood at 16 percent.
Unbiased.co.uk highlighted that their research reflects the ‘significant level of debt consumers have accumulated over the last year, putting themselves at risk of further problems in the long-term’.
……………………………………………………………………………………………….....
Homeowners who are currently juggling multiple, debt repayments each month could consider taking out a secured loan to tie them all up into one place. One of many finance options available, a secured loan for
consolidation could allow borrowers to replace several monthly repayments with just one. This new monthly repayment could be lower than the sum of current outgoings – thereby freeing up extra money each month.
