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Debt Consolidation

Debt is the UK is at its highest ever level, and currently stands at just below £1,460 billion in personal debts. If you include mortgages the average debt per person is £30,200.

If you only include people who have unsecured debts, the average person’s debt excluding mortgages is a staggering £21,300. So it is little wonder that with the current financial situation, huge numbers of people find themselves in a critical personal debt situation.

Even those who still have a good income are having problems because the amount of debt they have accrued over the last decade of easy credit has meant that millions of people are struggling to meet even the minimum payments each month.

On average a credit card can take 16 years to pay off at minimum monthly payments, because the interest rates are so high.

So how can ordinary people get themselves out of this situation. The answer for most is through debt consolidation. This is one single debt that replaces all of your other debts such as credit cards, store cards, car loans, and personal loans for items such as electrical goods, with one loan secured on your home.

What confuses most people is what is the point of swapping one loan for 12 other loans, they feel they are just exchanging lots of debts with a single one. Well that is true, but the point of debt consolidation is to pay off all your debts that attract high interest, and replace them with one debt at a much lower rate of interest that also has a much longer term.

The result is that taking out a secured debt consolidation loan will dramatically cut the amount you have to pay each month, allowing you more free cash, which will take away the strain of trying to juggle your debt payments, and replace that with one loan that you can actually afford to pay without over-stretching your financiers.

Latest Debt Consolidation news

Debt consolidation plan to avoid further debt

Apparently consumers in the UK are avoiding debt consolidation plans seeing them as a backwards step instead of forwards. Many Britons who are in debt do not let their family know of their financial duress, many times it is due to shame or embarassment about being deeply in debt.

More bad debt for banks?

There could be an increase of bad debt for banks because of more people defaulting on their loan payments, this could be from mortgages to credit cards to unsecured loans. The amount of bad debts has gone up by 0.3% as per the fourth quarter reports.

Pay off credit cards with high interest rates

Britons who are finding themselves deep in debt are looking for ways to Pay off credit cards with high interest rates because they are causing people to declare themselves bankrupt or look for debt advice in order to clear their massive debts.

Debt worries cause Pound to hit lull

In the US the dollar was performing better than the pound, which was dealing with a lull which lasted nearly three quarters over the last year. The reasoning was that it was because of the serious amount of debt the United Kingdom had accumulated.

Credit cards used on holiday

According to research compiled by Santander, the number of Britons who used their credit card on holiday amounted to 20%.

Are your employers paying less towards your pension?

Apparently, there are now more employees paying towards their pension than whom they work for. This is something quite new, as in recent years it was the opposite. This could mean that it is another way for companies to cut costs down in order to survive exiting the recession.

Credit cards used in daily spending

Recent sources have confirmed that more and more Britons are using their credit cards to pay for their weekly shop as well as spending on common everyday items. Using a credit card to pay for shopping might not sound so bad, until it comes time to pay the monthly credit card bill, in which case some may find the need for IVA advice before it gets out of control.

Pros and cons of debt consolidation

Debt entails paying back what you have borrowed. With the ongoing recession, and recent job losses, many people can no longer afford to pay back their debt and so rely on debt consolidation or another type of debt management solution.

Debt consolidation for university students

Debt consolidation may no longer be only for families and homeowners, as university students could be made to look into debt consolidation so they can continue going to University in the United Kingdom.

Credit card fraud and credit card debt

Apparently there have been suggestions that because there has been a recent uptake of credit card protection services to protect consumers from credit card fraud – less consumers are now finding that they have been victims of credit card fraud.

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