During the recession, many people procrastinate on everything related to their financial situation.
They waited and hoped that at any moment the recession would end and the economic situation would improve and completely change practically overnight, not only across the country but also in their own households.
These were, of course, rather foolish notions, since recovering from such a deep and all-consuming credit crunch takes years rather than months, and the end of a recession is not the emergence of a sudden miraculous new economic growth.
In fact, the UK economy is growing very slowly and experts say the likelihood of another recession is fairly high.
Mortgages have fallen over the past three years due to the public’s unwillingness to alter their finances in any way, partly as a result of the lack of security people felt in their employment status and partly as a direct result of falling house prices.
Debt restructuring and secured lending fell for exactly the same reasons as mortgages, and all despite the fact that the Bank of England’s base rate had been cut to an all-time low of just 0.05% to stimulate the economy prudent borrowing is the foundation of a healthy economy.
Low interest rates have not encouraged people to apply for mortgages, debt restructuring or secured loans, although many could have used a debt restructuring or secured loan for such things as debt consolidation.
Now that people are aware that there is no economic quick fix once the recession is over, they are going back to their normal habits, e.g. B. to buy a new car, since the sale of new cars is currently increasing rapidly.
Similarly, they must now realize that while low interest rates of just 1.84% are still available, the time has come to think about cleaning up their finances and combining outstanding credit cards, personal loans, etc.
Many have maxed out their cards to get through their shorter work hours, for example, and with credit card rates up to and even exceeding 40%, it’s a smart move to arrange a secured loan or debt restructuring to pay off those cards.
Debt conversions, as mentioned earlier, have interest rates starting at 1.84% for a tracker debt conversion and from 2.99% for a fixed product.
The interest rate on home equity loans or secured loans is currently around 9%.
Debt consolidation through a remortgage or secured loan can save hundreds to even thousands of pounds each month for heavily indebted people.
In addition, the debt consolidation leaves one monthly payment instead of numerous payments, which means that the debt consolidation borrower has less debt to pay each month, making it easier to manage finances.
Arranging debt consolidation is beneficial for those with debt.