Friday, April 13, 2007
Category:
Consolidation
According to recent news from Unbiased.co.uk over 7.5 million people are only saving money for short-term goals and about 3 million are describing themselves as ‘frivolous spenders.’ Research conducted by Unbiased.co.uk has shown that there are five types of spenders in Britain, these being Frivolous, Bargain, Occasional, Credit and Random. 7.5 million consumers only look at their financial situation in the short term.
The buy now, think later culture is highlighted by Unbiased.co.uk’s fifth annual report. Half of the population describe themselves as ‘Bargain Spenders’ who are keen to save money on purchases. Most respondents are still keen to spend, rather than save money and this is said to be the signature trait of ‘Generation Spend.’
Frivolous spenders are said to be those making purchases based on what they desire, not what they can afford, with a total of 3.8 million in the population. Occasional spenders are those who save for purchases and have a propensity for saving. They do however lack in looking towards the long term. Credit spenders are those who mainly use their credit cards to spend, and account for over 4 million people. Random spenders are those refusing to classify themselves as any of the other categories given in the research.
David Elms, Chief Executive of Unbiased.co.uk, commented: “This year’s research into the nation’s propensity to save shows some improvement, but it is disappointing that we still define ourselves as a nation of spenders rather than a nation of savers. It is more worrying to see the attitudes of young people towards the need to Get Saving! Hopefully we will continue to see improvements in saving practices so that by next year it will be possible to define British consumers by their saving as well as by their spending!”
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Homeowners who have overspent on credit cards, store cards and overdrafts, could consider consolidating these with a debt consolidation loan. Homeowner debt consolidation loans may be secured on homes and can be repaid over a term to suit the borrower, from 5 to 25 years. With multiple credit and store cards, it can be confusing juggling several different repayments. A debt consolidation loan will wrap all these payments into one and the borrower will know the exact date and amount payment will be taken each month. With a
debt consolidation loan, it is however important to remember that repaying borrowing over a longer term may increase overall interest charges. Debt consolidation loans may only be a helpful solution to help clear debt if credit accounts are closed to prevent racking up further debts.
