Hard Pressed Households Urged to Consider Debt Consolidation
A financial expert urged households quailing at the prospect of the soaring cost of living to slash that “expensive borrowing” with a debt consolidation loan yesterday.
Moneysupermarket.com head of banking Kevin Mountford commented on yesterday’s revelation that the UK rate of inflation now stands at its highest for more than two years with the Consumer Price Index is running at 4 per cent. He said that this will mean many British households are finding it hard to make ends meet, especially when it comes to meeting VAT increases and the rising cost of fuel.
Mr Mountford said that there were a number of measures that UK households could take to lessen the impact of the increasing cost of living, such as debt consolidation loans to reduce monthly outgoings from the repayment of credit cards and other high-interest forms of debt.
With low rate unsecured personal loans, smaller debts can be paid off immediately, with the priority going to paying off the sums accruing the highest interest rates. Remaining debt can also be repackaged, resulting in a single, more manageable monthly repayment.
“The recent increase in fuel and commodity prices coupled with VAT increases on 4 January has left all UK consumers feeling the pinch as the cost of living soars,” Mr Mountford added.
“It is easy to accept rising costs as a fait accompli but there are many ways people can lessen the impact. The first step should always be to review your outgoings, ensure you are on the best deal for your needs and start looking at ways you can be more savvy with your spending – all steps which can help to free up some vital extra cash.”