Is Debt Consolidation Still An Option?
Multiple credit cards, overdrafts and loans are seemingly part of everyday life for many people in the UK and with the credit crunch hitting harder, more and more people are suffering deep financial distress. In the days gone by a simple debt consolidation would have allowed many to package their debts into one arrangement, lengthen the time to pay off the debt and also reduce the interest rate payable, but is this still an option?
A couple of months ago the opportunity to consolidate debts was a far gone dream for many with banks looking to cut the amount of debt on their books rather than repackage multiple debts. While the money markets have firmed a little over the last couple of weeks and mortgage rates have been marked slightly lower, the subject of debt consolidation has not moved back to the fore.
The fact that the economy has not hit the bottom yet means that many banking customers will feel more pain before things start to get better and the banks seem very reluctant to offer any new arrangements. This fact aside, the rates which debt ridden customers would need to agree to may make the whole process uneconomical in the first place. Debt consolidation will return to the fore at some stage, but not quite yet.
Share this..
Related stories
GMAC-RFC hit by massive FSA fine
UK home loan provider GMAC-RFC has been hit with a massive FSA (Financial Services Authority) fine of £2.8 million and been ordered to repay £7.7 million in unfair and excessive charges to some 46,000 customers. This is by far and away the largest mortgage related fine issued by the FSA and the order to repay nearly £8 million has shocked many in the sector.
After a detailed inve...
StepChange calls for savings incentives
06/08/2015 StepChange, a leading UK debt charity, has called for banks to add incentives to save, so that more families will have a financial “buffer” if something goes wrong. The debt charity has discovered that an estimated seven million homes in the UK do not have emergency savings adding up to at least £1,000. They believe that with savings of £1,000, approximately half a million U...
Read MoreUK businesses struggling to find financial liquidity
Despite the fact that the UK government has pumped over £200 billion of taxpayer’s money into the banking system it appears that around 30% of UK companies are still finding it difficult to gain access to finance. The situation appears to have worsened over the last three months despite assumptions that the UK economy has bottomed out and is now starting to recover. So what next for the UK busi...
Read MoreLiberal Democrats agree with Labour takeover policy
The Liberal Democrat party today issued its manifesto for the up and coming general election and one policy which caught the eye of observers was a proposal to change takeover laws in the UK along the lines of those already announced by the Labour Party. It seems as though the Liberal Democrats and Labour party are both looking to protect Great Britain plc while the Conservative party has suggeste...
Read MoreLoyal customers punished by policies
Insurance companies are passing on their own rising costs to the customers who are most loyal to them, an economist has warned.Policies for existing clients are super-charged to account for the cost that companies incur when offering lower premiums to new customers, says Professor Vincent-Wayne Mitchell, an expert in marketing and member of the Cass Business School.Professor Mitchell told BBC Two'...
Read More