| Between 2007 and the end of the
recession people were unwilling to change their financial situation.
They waited and hoped that the recession would end at any
moment and the economoc situation would improve and totally
change virtually over night, not only in the country as a
whole, but in their own household.
When a recession ends the economy takes a long time to recover
and there is never any overnight change in the economy.
In fact the UK economy is witnessing only a very slight growth
with experts predicting that there is a fairly strong possibility
of the arrival of yet another recession.
Over the last three years, as a result of the public's unwillingness
to make any change to their finances, mortgages fell partly
as a result of the lack of security that people felt in their
employment status, and partly as a direct result of the fall
in property prices.
Remortgages tumbled as did secured loans for the exact same
reasons as did mortgages, all in spite of the fact that the
Bank of England Base Lending Rate had been reduced to the
all time low of only 0.05% in an attempt to kick start the
economy as of course sensible lending and prudent borrowing
are at the basis of a healthy economy.
The low base rate did nothing to encourage people to apply
for mortgages, remortgages or secured loans even although
many could have well done woth a remortgage or a secured loan
for such things as debt consolidation.
Now that people are fully aware that there is no economic
quick fix now that the recession is over, they are again returning
to their normal habits of such matters as purchasing a new
car for example with the sale of new cars currently soaring.
Similarly they must now realize that while low rates from
only 1.84% are still available, the time is right to consider
tidying up their finances and combining outstanding credit
cards, personal loans, etc.into the one payment by means of
either a remortgage or a secured loan.
During the credit crunch many used their credit cards to
their limit and with rates of interest up to and over 40%
credit cards are expensive and it is worth while arranging
a low interest remortgage or secured loan to pay them off.
Remortgages, as already stated, have interest rates starting
from as low as 1.84% for a tracker remortgage and from 2.99%
for a fixed product.
The interest rate for homeowner loans or secured loans is
from about 9% at the moment.
Debt consolidation by means of a remortgage or a secured
loan can save hundreds to even thousands of pounds each month
for people deep in debt.
In addition, debt consolidation leaves one monthly payment
instead of numerous payments, meaning that with fewer debts
to pay every month the debt consolidation borrower will make
the management of finances easier.
Debt consolidation places a person with a number of debts
in a win win situation.
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