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.