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Debt levels peak in Peterborough

Debt levels peak in Peterborough

 



Video transcript

On average each person in Peterborough owes close to £2,000 (£1,978) in unsecured personal loans or other individual debts making it currently the most indebted place in the whole of the UK which suggests that more people in that area may want to think about getting on of their finances through various options.

A recent study by the British Bankers` Association (BBA) and the Council of Mortgage Lenders (CML) has looked at how much is owed across the country and then worked it out on a postcode level, and Peterborough`s PE7 0 area is found to have the highest level of debt per head.

Newcastle`s NE13 9 sector is second on the list with over £1,600 (£1,648) per person, while London features twice on the list, with EC1V 2 and W1S 1 coming in at three and seven with personal debt levels of £1,523 and £1,363 per head, respectively.

Two areas of Leeds also feature on the list, as do parts of Hull, Swindon, Milton Keynes and Preston. The latter actually has the highest total outstanding balance at just under £5.8 million (£5,785,855), but the number of people potentially servicing the debt means that it averages out at £1,401.

Wherever you are in the country, debt can get on top of you. These numbers are not that high and hopefully with some careful personal finance control you could get these cleared down in a relatively short period. However if you having a larger burden of financial debts and are not able to continue to service them then you may wish to consider refinancing now to benefit from some quite low rates across some of the loan and mortgage market. Using a secured or unsecured debt consolidation loan, or even remortgaging may be an option if you realise that without altering the current cash flow you are going to get into real difficulties. Many of the borrowing solutions can be secured and therefore carry the same risks as a mortgage so explore all options before you decide which way to go.

First Choice Finance`s dedicated finance team will help with this by explaining which options we are able to help you with. You will always choose whether to go ahead or not. If you decide refinancing is for you the money you require will be released as smoothly as possible, allowing you to get started with your new repayment structure. Monthly repayments would be lower of course but bear in mind you may well pay more interest over the term of any debt consolidation loans.

Enquire at firstchoicefinance.co.uk or call our team, from a mobile on 0333 003 1505, or is using a landline dial 0800 298 3000.

What is potentially worrying about the figures from BBA and CML is they don`t include every lender, with just three fifths of the personal loan market covered. This could mean that there are other hotspots around the country where debt servicing may require a real sense of relief for some consumers.

Separately, the BBA has indicated that much of this unsecured lending could be coming from credit cards, which may incur high interest rates and because you do not have a fixed term that `ends` the debt on most of these types of finance they can potentially lead borrowers into a debt spiral that may be difficult to get out of.

The authority notes that borrowing on plastic grew by more than six per cent year on year during August, the quickest rate since the summer of 2008. This manifested itself in 205 million card purchases worth a total of £11.7 billion, at least that some good news for the retail sectors.

There is more good news insomuch as the percentage of plastic borrowing that incurs no interest has risen to 42 per cent in the August just gone, compared to 34 per cent two years previously. This suggests that there`s a greater responsibility among spenders, who are paying off their balances in full and on time, as well as making the most of interest free promotions.

However, this does still leave 58 per cent of credit card borrowers who do accrue interest on what they owe to the lender, meaning that if they do not clear that element next time they will be paying interest on the previous months interest costs.

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
4.5% APRC
Representative Example: 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.
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 immovable property.



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.


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