Secured loans and post-Christmas debt
04/01/2008The cost of Christmas can become all too clear in the first week of January as many people turn to secured loans and debt consolidation in an attempt to reorganise their finances.
According to an article for the York Press, consumers often begin to realise the effects of increased spending over Christmas around this time of the year, leading to many seeking financial solutions - such as secured loans or debt consolidation.
Citing a recent survey by Axa Insurance, which found that around three-quarters of UK consumers claim to have been subject to money worries, the newspaper said that concerns over debt can be particularly prevalent in the early part of the new year.
This view is also endorsed by Charles Helfferich, director of Grosvenor Financial Consultants, who told the newspaper that expensive gifts and pressure on parents can be some of the key reasons that many people may need to seek help with their debt.
"It is a time of year when people are getting into financial trouble … and it is getting worse and worse every year," he said.
Earlier this week, Moneyfacts advised that credit card interest rates could continue to rise in 2008 as lenders try to limit the damage of the credit crunch - which could add to may people's debt worries.
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