MoneyExpert Also Showed That One In Five Have Debts Of More Than 20, 000 Pounds

Category: Finance, Credit.

Significant numbers of people are looking to get to grips with their finances, new research shows. The price comparison website indicated that young people are most likely to transfer debts accrued across a number of credit cards, loans and overdrafts to a single money lender.

In a study released by MoneyExpert, it was revealed that 14 per cent of Britons- about 5 million- have taken steps to reduce their levels of indebtedness during the past three years. Just under a quarter( 23 per cent) of those between the ages of 25 and 34 were shown to have moved all borrowing to one financial provider. Meanwhile, 16 per cent have consolidated between 10, 001 pounds and 15, 000 pounds. During the last three years, just under a third( 30 per cent) of debt consolidation consumers have been looking to manage debts of up to 5, with a quarter, 000 pounds of respondents aiming to handle between 5, 001 pounds and 10, 000 pounds in monies owed. MoneyExpert also showed that one in five have debts of more than 20, 000 pounds. Commenting on the figures, chief executive of, Sean Gardner MoneyExpert, said: "Anyone who is juggling a range of debts with money owed on credit cards, store cards and loans should be acting to get their debts under control.

Such consumers, are likely to, it was claimed use a cheap consolidation loan which is secured against their property. It is encouraging that so many people have taken action as you can make significant savings by moving all your debts to one place. Mr Gardner went on to report that such a loan should not be seen as something which can be taken out on a year- to- year basis to help borrowers supplement their spending. With average standard credit card rates at 101 per cent compared to average unsecured loan rates of 44 per cent it is clear that borrowers can cut their monthly interest bill by moving. " He added that it is important for those taking out a consolidation loan to view it" as a wake- up call to get debts under control" . Research from the financial services firm also revealed that an increasing number of people are looking to take out a secured loan. For those looking to get to grips with their money management, a debt consolidation loan could be of assistance. In the three months leading up to the end of October, applications for homeowner loans were indicated as standing at 22, between November and, 84However January such requests accounted for 42, 22This figure represents a rise of 85 per cent.

By taking out a low- rate loan for the purposes of consolidation borrowers may find that they are able to merge a number of demands on their spending into a single affordable monthly repayment. The research also showed that women are more anxious about financial matters than are men. This may be of help for a significant number of consumers after a recent Co- operative Bank study indicated that 48 per cent of people are either" concerned or deeply concerned" in regards to how much money they owe, with four- fifths worried about their level of savings.