Show Me The Money!

Written by on February 12, 2013 in Money - No comments | Print this page


Show Me The MoneyKeeping Up with the Joneses

The current financial global crisis, which has now been going for over four years, is the result of a great many factors. Not least of all, the amount of household debt acquired during the more prosperous years.

At the time, it was generally believed that this could go on almost indefinitely but once it came to light that some of the world’s largest banks were undergoing some difficulty, that bubble burst.

Household debt was at an all-time high and when people started to lose their jobs, they became unable to pay off their credit cards, unsecured loans, mortgages and other borrowing.

As a result, national and personal debt spiralled out of control, some banks were bought up or sold off and businesses and individuals found themselves owing a lot of money. Still, the government is raising some taxes and public spending, including benefits payments, are being cut.

Keeping Up with the Creditors

For those who managed to survive the worst of the economic problems, the concern is not over. Credit cards, mortgages and loans need to be paid. Further, household bills are increasing; the price of fuel, household energy, food and other everyday expenses only ever seems to increase.

Wage rises are below the rate of inflation and everything else exceeds inflation. It is difficult for working families to make ends meet without taking second jobs; and of course, unemployment is still relatively high. Early figures suggest that repossession in 2012 were as high as they were in 2011.

There are many options that householders can investigate to manage their existing debt. Certainly it is always worth discussing your options with your bank, taking formal financial advice from an independent advisor.

Some of the advice might be moving to a smaller home, moving credit card balances to one of the many long-term interest free deals currently on offer, or they can take out one of the new breed of low-interest, debt consolidation loans.

Choices Choices Everywhere

Reacting to the changing market, financial services are offering many new types of loan to help households deal with the on-going financial crisis. Banks are offering low interest loans of high value to help households consolidate existing debts into one manageable monthly payment.

Credit card providers, though credit limits are not as high as they once were, are also offering long term interest free deals to encourage consumers to transfer existing balances from other providers, or generous interest free periods for any purchases or cash advances.

At the other end of the scale, there are very short term loans available at extremely high interest rates for people who have not managed to make their wages stretch for the month. It must be pointed out that these not a long term solution and should only be used in the most of dire emergencies.

With so many options available, it is understandable that the consumer might feel a little overwhelmed at the choices and unable to make a wise judgement about which service would suit them.

The Web is a Wonderful Wonderful Thing

It has never been easier to research the different types of loan available. Neither has it been easier to apply for a loan. It used to be that you would have to visit your bank or building society and fill out some lengthy paperwork to justify how much money you required, what it was for and how much you could afford to pay off.

These days however, there are many comparison sites that you can visit from the comfort of your own home and you can get a loan relatively quickly. This is the strength of the Internet, that the consumer can research all available options to make a more informed choice.

It is important that the consumer researches the different types of loan available to see which would suit their debt management programme the best. With so many options and so many comparison sites, loan seekers have never had so much choice in how to go about paying off what they owe.

William Bancs is a recent graduate still working through paying off his student debts. A low interest loan was one of the methods he considered to manage his debt.

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