Debt consolidation and declining consumer confidence Monday 16 June 2008 PDF Print Following the recent British Retail Consortium (BRC) survey on consumer confidence, debt consolidation experts debtadvisersdirect.co.uk remind people in financial trouble to seek expert debt help as soon as possible. Of the thousand people polled, nearly 60% felt their personal finances would be either bad or not so good over the next year. “What’s interesting about the BRC’s figures,” says a spokesperson for debtadvisersdirect.co.uk, “is that they reflect consumer sentiment, rather than any official perspective. Today’s economic troubles aren’t the kind that only worry bankers and Treasury officials: they’re issues that impact day-to-day life.” “To look on the bright side, at least people are aware of the problems ahead – we’d be more worried if consumers were unconcerned, while financial experts predicted difficult times.” Concerned consumers are, hopefully, more likely to seek debt advice early on and look around for a debt solution that can help them cope with rising costs and/or falling incomes. In many cases, a debt consolidation loan could be an appropriate way to reduce their monthly expenditure. “A debt consolidation loan is a simple idea: when people consolidate their debts, they’re paying off their (often high-interest) debts with a single loan. Consolidation loans often come with lower interest rates, but that’s not the most important benefit here. When someone consolidates their debts, they have a chance to rethink their repayment terms: they can reduce the size of each monthly payment by arranging to repay the funds over a longer period of time. Of course, a longer repayment term will mean they’re paying interest for longer and the debt may cost more in total. Nonetheless, lowering monthly repayments can make all the difference here and now, freeing up the cash they need for their priority bills and other living expenses.” “We’d always recommend people seek help before it’s too late, but today it’s more important than ever to take prompt action. Already, one in five people has no spare cash, but experts are predicting further rises in the cost of essentials like petrol, food and utilities. It’s clear that any borrower who’s only just managing today needs to seek advice without delay.” And ‘action’ doesn’t necessarily mean debt consolidation. “Debt consolidation loans aren’t the only debt solution that can help people through tough times. Debt management can also reduce someone’s monthly payments to unsecured debts, as can an IVA (Individual Voluntary Arrangement, a legally binding form of debt solution for people with significant debts). Homeowners, of course, may well have more options: depending on their situation, they may wish to consider a debt consolidation mortgage, rather than a debt consolidation loan.” About debtadvisersdirect.co.uk Debtadvisersdirect.co.uk helps people with financial difficulties, providing free advice and tailor-made debt solutions. For more information, contact Melanie.Taylor@debtadvisersdirect.co.uk (0845 056 6480) or visit the debtadvisersdirect.co.uk website at http://www.debtadvisersdirect.co.uk/. This press release was distributed by ResponseSource Press Release Wire on behalf of Debt Advisers Direct in the following categories: Personal Finance, Business & Finance, for more information visit http://pressreleasewire.responsesource.com/about.