This year has resulted in a four per cent increase in unsecured lending, according to a new report, and debt consolidation could remain a useful way for many people to keep their spending in check.
PwC`s Precious Plastic survey has indicated that household debt – excluding mortgages – has risen to £216 billion in 2013 or a little over £8,000 each. Increased student tuition fees are causing much of the damage, as without them, the average figure would be around £5,900.
The report shows that 26 per cent of people remain concerned about their ability to pay back what they owe, but the amount of 25-34 year olds putting essentials like groceries on credit cards has fallen from 25 per cent in 2012 to 15 per cent this year.
While credit cards can be a suitable way to spread payments when hit with unexpected bills, if you struggle to pay back what is owed and keep using credit to fund your lifestyle then at some stage you may run out of available credit and just be left with large monthly bills. In that case debt consolidation could help to restructure your finances so that you pay back a more manageable amount each month, although you may end up paying more in interest.
Discover more about how debt consolidation might help you pay back your unsecured debts and improve your cashflow by visiting firstchoicefinance.co.uk or by calling us on 0800 298 3000 or 0333 003 1505 from a mobile.
Homeowner Secured Loans
Rates From 7.1% APRC
Representative Example £30,000 over 72 months @ £679.90 repayments. Total payable of £49,949. 20.1% APRC including £2,975 intermediary fee and a £995 lender fee. Loans secured on property.
First Choice are tied to certain loan providers.
Mortgages & Remortgages
Borrow £80,000 over 25 years
At 4.6% Variable, £461.95 for
300 months. Total Payable
£138,585. Total Cost Of
Credit £58,585 (incl £1360 fee).
Unsecured Personal Loans REPRESENTATIVE 49.9% APR (VARIABLE)
First Choice are tied to certain unsecured lenders.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Security is required on
Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home
First Choice Finance is a trading style of First Choice Funding Limited of The Old Courtyard, 103 Buxton Road, High Lane, Stockport, Cheshire. SK6 8DX. Copyright protected 2014.