Recession Hits Loan Customers Hard May 9th, 2012
Recent figures for the UK economy have shown that Britain has now entered a recession for the second time, which is hitting many consumers hard just when they were beginning to think that their financial situation and loan debts were getting better.
New research from the insurance company Legal & General have shown that somewhere in the region of an extra 1.2 million people across the country are now struggling to stay on top of their loan repayments and other household bills on a monthly basis as a result of the downturn, with many missing loan repayments and building up loan arrears.
The increase in numbers has been calculated up to the end of April this year and this means that there are now around 3.3 million consumers in the UK who have more money going out in bills and loan repayments each month, than they have coming in in the form of regular income.
The survey found that only around four in ten households in the UK are in the position where they have some level of disposable income left over at the end of the month, thereby allowing them to build up some savings, or overpay on their personal loans and credit cards in order to reduce their overall debt levels.
The figures show that, for those who are seeing a shortfall between their income and expenditure, the average shortfall is around £74 per month, although many consumers are in a far worse position than this.
Those individuals who find themselves in this position should take action before it is too late and they have high levels of loan arrears. Firstly they should contact their loan providers and other creditors to see if they can offer any alternative repayment plans to restructure their loan.
A debt consolidation loan could be a possible solution to reduce monthly outgoings, as well as shopping around for the best deals on other household bills, such as utilities and insurance products.