Almost one in three people in Great Britain expects a drop in disposable income this year either through salary cuts or increased costs as the effects of the recession take hold, meaning more people may have to utilise secured credit.

New research from Virgin Money shows 29% of adults expect their income to fall over the next three months and the next 12 months. It also revealed an alarming lack of confidence in consumers’ ability to pay household bills – even worse, one in 10 are not confident they can keep up mortgage and insurance payments and one in five are pessimistic about being able to afford new clothes.

Rob Clifford, UK managing director of Virgin Money says: “The economic outlook may look bleak and consumers are now familiar with harbingers of doom on a daily basis.”

If you are having trouble paying for the essentials, talk to a broker and see if you can get hold of some secured credit to consolidate debt and bring your outgoings down. It’s quick, it’s simple and if it’s planned right it shouldn’t have any long-term consequences.

There is nothing wrong with struggling financially, but there is something wrong if you let it get the better of you. Don’t avoid the issue and don’t let it ruin every part of your life – nip it in the bud and begin getting a bit more confident about your financial future.

Clifford adds: “There is light at the end of the tunnel. Although there are signs of recession everywhere but there are also signs for optimism.”

SOURCE: Virgin Money, 17/02/09

To keep up with the latest news and comments on current financial affairs please visit the Secured Loan Blog.

Millions of consumers are still reliant on credit for day-to-day living costs in 2009 according to the Post Office.

The survey reveals over 10 million adults intend to use their credit card in the first part of the year for daily purchases such as grocery shopping.

It also found that 2.6 million people intend to spend even more on their credit cards than last year, with an average spend in January of £318. Worryingly, the trend looks set to continue, with 4.1 million card holders planning to spend less on each purchase but use their cards more frequently for general living costs throughout the whole of 2009.

With almost half of all credit card holders not planning to pay off their credit card bills in full each month, it might be time to reconsider whether using unsecured debt is the best strategy.
Az Alibhai head of lending at the Post Office says: “In the current climate, many people have little choice but to rely on their credit cards to fund more expensive purchases. However, what is worrying, is the trend for people to continue to rely on their cards for basic day-to-day purchases, which could be expensive if you only pay off the minimum amount on your credit card each month and have a high rate of interest.”

If you are living by plastic, it’s time to think again. The more that is amassed on a credit card, the greater the risk of missing rising payments. Talk to a financial adviser and see what you can do to change your spending and borrowing habits for the better.

SOURCE: Post Office, 04/02/09

To keep up with the latest news and comments on current financial affairs please visit the Secured Loan Blog.

More and more kids are helping out their parents with rising bills during these tough times.

Engage Mutual has found that more than four out of 10 kids have helped support their parents financially in the last six months, mostly thanks to uncontrollable bills.

A spokesperson for Engage Mutual Assurance says: “As financial pressures grow, family generations are increasingly turning to each other for support in making ends meet. Our research has shown that many young Britons are sharing the burden.”

If you are struggling with the bills and with debts, and you do not want your kids to help you, maybe you should look to the equity in your home. You have been paying your mortgage diligently when times are good, so why not use some of that hard-earned equity when times are bad?

Kids helping might be a short-term answer, and it’s really good of them to help, but usually these situations need long-term solutions. A secured loan is certainly for the long-term – it can be used to consolidate debt and makes sure it will not come back.

It will also mean that you can finally get on top of your finances and not have to ask your kids for help. You are the parent and you like to do things for them, not the other way round. If you unlock some of your equity then you will be able to turn your financial life around and maybe be in a position to give back to the ones you love the most.

To keep up with the latest news and comments on current financial affairs please visit the Secured Loan Blog.