More people are turning to Debt Consolidation Loans as consumer debt increases.
- Date: 2007-03-08 - Word Count: 480
Share This!
A recent survey has revealed that as many as 1 in 7 adults in the UK has turned to debt consolidation in the past three years, in an attempt to try and bring their borrowing and debt under control. Millions of people nation-wide have taken out unsecured loans or re-mortgaged their homes in an attempt to place all their debts in one place, with Scots borrowing an average of £14,500 - among the highest in the UK.
The survey, which spoke to more than 2500 adults across the country, showed that 36 per cent of those arranging consolidation loans took out an unsecured personal loan, while 15 per cent transferred their debt to a zero-rate credit card. However, 18 per cent opted to add the cost of the debt onto the cost of their home loan by re-mortgaging. Furthermore, the research suggests that up to 360,000 people - around 6 per cent of consolidators - took out a loan in excess of £50,000.
The research provides a glimpse into the UK's ever-increasing problem with debt. But, while debt consolidation is a good and entirely sensible way to get your finances under control - especially if your debts are with various lenders and at various interest rates - consolidating your debts should be seen as a ‘wake up' call towards getting your finances under control.
Debt consolidation involves arranging a single loan to cover all the debts you currently owe - regardless of whether the debt is to your bank, a credit card company or even a debt collection agency, such as Capquest. Recent times have shown that most people believe consolidation is a way to continue borrowing, as it has become far too easy for people to consolidate their borrowing into a single loan and continue to borrow. Unfortunately, this strategy often leads to people falling even deeper into debt than they had been previously.
Some financial experts warn that debt consolidation should only be viewed as a last resort, especially if you find your back is really against the wall. They suggest that the threat of serious legal proceedings or the potential loss of the family home should be the only instances where debt consolidation should be considered.
Advertisements on television and in newspapers, all offering easy solutions to escaping the debt trap, might seem tempting to those in financial difficulties. However, debt consolidation only works if you are prepared to curb your spending and work at getting your finances back on track. Debt consolidation may be seen as a quick fix, or an easy solution to debt problems but statistics are now showing that this isn't the case.
If you are considering debt consolidation, it makes excellent sense to research your options beforehand. Many price comparison websites can check the market for debt consolidation loans for you, helping you find the option that best suits your needs.
----
Martin McAllister is an online, freelance journalist and the author of several debt-related articles.
The survey, which spoke to more than 2500 adults across the country, showed that 36 per cent of those arranging consolidation loans took out an unsecured personal loan, while 15 per cent transferred their debt to a zero-rate credit card. However, 18 per cent opted to add the cost of the debt onto the cost of their home loan by re-mortgaging. Furthermore, the research suggests that up to 360,000 people - around 6 per cent of consolidators - took out a loan in excess of £50,000.
The research provides a glimpse into the UK's ever-increasing problem with debt. But, while debt consolidation is a good and entirely sensible way to get your finances under control - especially if your debts are with various lenders and at various interest rates - consolidating your debts should be seen as a ‘wake up' call towards getting your finances under control.
Debt consolidation involves arranging a single loan to cover all the debts you currently owe - regardless of whether the debt is to your bank, a credit card company or even a debt collection agency, such as Capquest. Recent times have shown that most people believe consolidation is a way to continue borrowing, as it has become far too easy for people to consolidate their borrowing into a single loan and continue to borrow. Unfortunately, this strategy often leads to people falling even deeper into debt than they had been previously.
Some financial experts warn that debt consolidation should only be viewed as a last resort, especially if you find your back is really against the wall. They suggest that the threat of serious legal proceedings or the potential loss of the family home should be the only instances where debt consolidation should be considered.
Advertisements on television and in newspapers, all offering easy solutions to escaping the debt trap, might seem tempting to those in financial difficulties. However, debt consolidation only works if you are prepared to curb your spending and work at getting your finances back on track. Debt consolidation may be seen as a quick fix, or an easy solution to debt problems but statistics are now showing that this isn't the case.
If you are considering debt consolidation, it makes excellent sense to research your options beforehand. Many price comparison websites can check the market for debt consolidation loans for you, helping you find the option that best suits your needs.
----
Martin McAllister is an online, freelance journalist and the author of several debt-related articles.
Related Tags: consolidation, debt, finance, loan, increase, loans, borrowing, consumer, spending, capquest, consolidators, trap
Your Article Search Directory : Find in Articles
Recent articles in this category:
- The Secrets to Getting Low Down Payment Car Insurance
Upon purchase of a new car, there is almost always a requirement to buy an auto insurance policy as - The Wisdom Behind Auto Insurance Comparison Quotes
No one in his right mind would not go for a good deal. In fact, everyone is out on their feet and ru - The Benefits of Auto Insurance Comparisons Florida
Insurance can be expensive. This is something everyone knows about especially in the sunny state of - Auto Insurance Florida: The No-Fault Policy
There are different kinds of car insurance offered by a wide range of providers today. Different sta - Finding the Cheapest Auto Insurance Companies
Everyone is asking and searching for the cheapest auto insurance companies available today. Consider - How do You Compare Private Health Insurance Cover in Australia?
Deciding what is the best and most affordable private health insurance cover can be easy if you take - How Payment Protection Insurance Was Mis-Sold
For over six years the issue of Payment Protection Insurance (PPI) and how it was mis-sold to custom - Finding Quotes For Auto Insurance Online
One of the many concerns when you are shopping for auto insurance is being able to get access to quo - How You Can Find the Best Auto Insurance Online
When it comes to renewing your car insurance you are going to quickly discover that there are a numb - Guidelines For Searching For Auto Insurance Online
The internet can be a great source of discounts and values related to auto insurance. However, many
Most viewed articles in this category:
- Trading Forex With Pivot Points
Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days mo - Where To Search For Free Grants
Where do you look for free grants? The search must be thorough or it could be an exercise in futilit - The Connection Between High Blood Pressure and Salt
We are a society of Salt Addicts. It cannot be denied. When you look at the things we do and the pla - Tips For Avoiding HYIP Scams
Before knowing about HYIP Scams, refer to the functioning of HYIP or "High Yield Investment Programs - Getting Credit After Bankruptcy
Consumers do not have to live sans credit following a bankruptcy. By following certain steps consume - Tips For Choosing A Credit Card
Are you looking for that perfect credit card? If so, you may be confused about what exactly to look - Cheap Car Insurance For Teens Online
Many elements determine a car insurance policy. Car insurance companies look at the person's age, hi - What Exactly Is Free Grant Money?
You can apply for free grant money from various government agencies. But where exactly does this mon - Small Business Owners Marketing and Customer Service
Marketing can be time-consuming, but it doesn't have to be hugely expensive now, thanks to the Inter - Apply Online For A Credit Card - How To Choose A Card?
The best type of credit card for you will be dependant on how you intend to use the credit card. Are