Consumers offered debt management solutions
Consumers offered debt management solutions
Friday 22nd May 2009
People face a tricky scenario when considering the best avenue through which they can borrow money, with credit cards, overdrafts and unsecured loans offering choices that need to be thought through properly.
According to David Black, principal consultant of banking at Defaqto, consumers need to sometimes think out of the box when comparing the different deals available in the market.
Having good debt management is important because those with healthy credit ratings have a greater chance of getting suitable products.
"An individual's credit report, employment and property status, affordability, indebtedness, financial behaviour and usage are all part of the mix in the lender's decision making process," he explained.
"Personal pricing or 'risk-based pricing' is taking a real hold in the unsecured market so, as an individual's credit worthiness deteriorates it becomes increasingly difficult and, when available, more expensive to borrow."
Therefore ensuring that one's credit background is impeccable is vital for accessing finances in future because lenders are jittery and would readily turn down many applicants, added Mr Black.
Consumers can streamline their finances by opting for credit facilities that offer zero per cent on certain terms, which are available for credit cards and overdrafts, as well as unsecured loans with low rates.
The total consumer credit lending to individuals at the end of March 2009 was £232 billion, according to the latest statistics from debt charity Credit Action.
News article brought to you by Debt1 – UK debt management specialists.
Related News
Consumers forced into debt management corner due to letting agents' practices - 21/05/09
Private tenants risk being plunged into a situation where they may need debt management solutions as a result of unscrupulous activities by letting agents who are routinely ripping them off
Private tenants risk being plunged into a situation where they may need debt management solutions as a result of unscrupulous activities by letting agents who are routinely ripping them off
Price over-estimation could leave homeowners in need of debt management solutions - 20/05/09
Homeowners in the UK could be left in need of debt management in future as a result of a habit that has been brought to light by research conducted by Abbey Mortgages
Homeowners in the UK could be left in need of debt management in future as a result of a habit that has been brought to light by research conducted by Abbey Mortgages
Current mortgage rates could spur need for debt management solutions - 19/05/09
Borrowers looking for a long-term fixed-rate mortgage deal could need debt management solutions in future if they go ahead with current products being offered
Borrowers looking for a long-term fixed-rate mortgage deal could need debt management solutions in future if they go ahead with current products being offered
More people in need of debt management as mortgage debt soars - 15/05/09
The number of people getting into debt as a result of falling behind on their mortgage payments is continuing to rise, according to new data published by the Council of Mortgage Lenders CML
The number of people getting into debt as a result of falling behind on their mortgage payments is continuing to rise, according to new data published by the Council of Mortgage Lenders CML
BT workers and shareholders could need debt management solutions - 14/05/09
Some 15,000 people are likely to be left in need of debt management solutions following news that telecoms operator BT is to lay off workers after recording an annual loss of £134 million
Some 15,000 people are likely to be left in need of debt management solutions following news that telecoms operator BT is to lay off workers after recording an annual loss of £134 million
News Article Search
Quick Apply
News Archive