Why you should consider consolidating your unsecured debt

When you’re juggling multiple debts it can be difficult… You’re reading the blog post Why you should consider consolidating your unsecured debt that was written by and first published on Getting Loans and Credit & Managing Money.
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Household debt costs to surge over next five years

The next five years could be a tough time for those with debts, whether credit cards or mortgages. According to projections obtained by a freedom of information request to the Office for Budget Responsibility, the cost of household debt is going to soar. In fact, by 2023, debt servicing costs are likely to increase by 29%. The rise of a third in the cost of having a mortgage or servicing loans could be challenging for many UK households already stretched to breaking point. But where is the cost most likely to bite and what can you do to prepare for it? Where are we right now? Most of the UK population is currently unprepared for the reality of what a significant increase in debt cost is going to look like. Over the past five years we have seen debt costs fall 9% and decline as a percentage of household income. However, this has been largely thanks to the way interest rates have remained low. In November 2017, the Bank of England raised interest rates for the first time in a decade and
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Are you taking on debt you can’t really afford?

“Alarming” increases in consumer debt have been much in the media in recent times. New figures show that unsecured debt could exceed £15,000 per household in 2019, rising to £19,000 per household by 2022. This is not debt made up of mortgages but purely unsecured debt, such as personal loans and credit cards. The statistics have triggered fears that whole swathes of the UK population will end up with debt that they can’t afford to repay – the effect of which could be disastrous for the economy as a whole. However, while there’s no doubt that household debt levels are certainly rising, the demographic affected by this is not as many have predicted. Who is taking on this new debt? New research from the Bank of England and the Financial Conduct Authority has found that new borrowing is not necessarily being driven by desperation. The research has identified that these borrowers have good credit ratings and no mortgages. So, they are not made up of “the struggling poor.” T
http://bit.ly/2CK7dvy

Are you taking on debt you can’t really afford?

“Alarming” increases in consumer debt have been much in the media in recent times. New figures show that unsecured debt could exceed £15,000 per household in 2019, rising to £19,000 per household by 2022. This is not debt made up of mortgages but purely unsecured debt, such as personal loans and credit cards. The statistics have triggered fears that whole swathes of the UK population will end up with debt that they can’t afford to repay – the effect of which could be disastrous for the economy as a whole. However, while there’s no doubt that household debt levels are certainly rising, the demographic affected by this is not as many have predicted. Who is taking on this new debt? New research from the Bank of England and the Financial Conduct Authority has found that new borrowing is not necessarily being driven by desperation. The research has identified that these borrowers have good credit ratings and no mortgages. So, they are not made up of “the struggling poor.” T
http://bit.ly/2EQTngE

Is consumer spending and debt getting out of control?

Debt is something that many of us have learned to live with. And, on the whole, it provides a useful way to make important life changes, from paying for study to buying a home. But, in autumn of this year, figures were released that revealed that British consumers now have unsecured debts that total more than £200 billion (i.e. exc. mortgages and other secured loans). That’s an increase in personal debt that brings it to levels not seen since the financial crisis. Debt levels are rising In 2014, consumer credit grew at an annual rate of 4%.  However, in 2016 this figure hit 12% as it was revealed that British consumers now had credit commitments to the tune of £204 billion. As 2017 draws to a close the figure remains lower than last but this has predominantly been put down to a drop in car loan figures, as opposed to a drop in the appetite for consumer debt overall. This increasing desire for consumer borrowing has worried many experts, particularly in the light of the recent int
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How would a debt “breathing space” work?

There has been much talk in the media about how debt and repayments differ in the way that they are handled between Scotland and the rest of the United Kingdom. In Scotland, debtors are legally protected when they get into difficulty and enter into debt payment programmes. In these, a court assesses what a debtor can afford to repay over an agreed timescale and then freezes interest, penalties and other administration charges. There are also restrictions on the way that creditors can contact customers who are in this position. In England and Wales, however, there is nothing in law to stop a creditor from refusing to give a debtor breathing space, meaning that interest charges and penalties can continue to rack up, potentially putting the customer into very severe financial difficulties. The lack of rules over debt breathing spaces has led many people to claim that the situation harms both customers and financial organisations because it means that those who are in debt do not have any
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