Britain’s debt pile is mounting up as households borrowed an extra £20bn on credit cards in the last decade. Debt Consolidation could be the solution your client is looking for.
Britain’s unsecured personal debt levels have continued to increase as reliance on cheap credit has not decreased. UK households have £45bn more debt on credit cards, personal loans and overdrafts compared to the start of 2010. Credit Card debt alone stands at £72.4bn compared to £53.2bn at the start of the decade. The increase means that for every adult in Britain, there is plastic with nearly £1400 of debt outstanding on it.
The surge in debt is due to credit becoming cheap towards the end of the last decade combined with record levels of employment has encouraged people to borrow. The increase in debt levels is also down to Credit Card companies aggressively promoting 0% Credit Cards. Borrowers were offered 4 years interest-free at the middle of the last decade, however this has tapered off and the best available has been 0% for 29 months. Your client could do a balance transfer to move existing debts to another 0% deal. However, your client will need to repay the debt back at some point and could become saddled with even more debt if this is not addressed.
The Solution: Debt Consolidation
The solution for your client could be using a second charge mortgage for debt consolidation purposes. This will allow your client to combine all existing debts which can make repaying the debt more manageable over time. The main advantage is reducing your client’s monthly payments and saving them a considerable amount of interest too!
At Smart Money we can turn around a debt consolidation within 7 working days from the pack being returned to us. Click here for our case study.