More Time Being Spent Servicing Debts
People are taking an increasing amount of time to service their debts, it has been revealed.
According to Unbiased, today (March 10th) is Debt Freedom Day - the time of the year when consumers will have earned enough money to allow them to complete interest repayments on the debts accrued on personal loans and credit cards. Starting from the beginning of the year, it was stated that Britons have needed to work for 70 days to generate enough income to service such indebtedness.
Now it was claimed that people should be in a position to take steps to make actual reimbursements on their debts. However, in 2007, the day when people have finished servicing the amount they owe was revealed to stand at February 1st.
Meanwhile, research from the financial advice site revealed that the amount of personal debt has surged by more than ten per cent over the course of last year. During the same period of time the typical level of interest payable on such debts has increased by six per cent.
Commenting on the figures, David Elms, chief executive at Unbiased said: “This year’s Debt Freedom Day is a real warning for UK consumers - as it marks the day we start paying off the actual debt levels rather than merely servicing the interest accrued. Compared to last year we spend almost two months longer this year to pay off the interest of our borrowings and this doesn’t even take into account mortgage costs.”
Unbiased also revealed that personal loan debt in Britain currently stands at 9.8 billion pounds, an increase from the 2.6 billion pounds recorded in 2007. However the amount owed on credit cards has dropped to 54.9 billion pounds, in comparison to 55.6 billion pounds last year.
Mr Elms added that although Debt Freedom Day “is of course a hypothetical point in the financial calendar” it is a date that many consumers should be aware about. He stated: “In the current economic climate it is has never been more important for people to realise just how much it costs to service their debts and to ensure they have adequate funds available to do so.”
The executive went on to report that getting monetary guidance from an independent financial adviser could help people get back on their fiscal feet. In getting such help, it was stated that consumers should be able to take stock of their current financial standing and identify areas where they can reduce expenditure and increase the amount of money they can save.
For those looking to get to grips with their finances, applying for a consolidation loan could prove to be of assistance. By taking out such a loan it is possible that consumers could merge monies owed on existing debts into a single low-cost amount. Last month, Rachel Lacey, editor of Moneywise, reported that a debt consolidation loan can be “great” for Britons wanting to improve their money management. However, she stated that after getting a cheap consolidation loan it is crucial that consumers do not go on to borrow more money through overdrafts and credit cards.
Abbi Rouse
http://www.articlesbase.com/debt-consolidation-articles/more-time-being-spent-servicing-debts-358811.html
Comments
Are You Happy With The Amount Of Debt Obama Has Created?
"Our current-year deficit will hit 11.2 percent of gross domestic product (GDP), the highest percentage since the end of World War II. By the end of the next decade, the United States will spend more money paying the interest on the public debt than it will on any other governmental activities except Medicare and Social Security."
"America will be spending more to service its debt than it will spend on education, the environment, infrastructure, scientific research, national defense and all the other things our Founding Fathers thought were important to the nation."
Are you happy that Obama has doubled our National Debt?
http://washingtontimes.com/news/2009/sep/04/looking-behind-the-curtain/
Sometimes I think he wants the dollar to collapse.
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I am unhappy with the debt CONGRESS has created. Presidents don’t create debt, though, they get all the blame for it. Congress writes the laws and controls the purse strings.
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Sometimes I wonder if his CHANGE meant a "New form of American Govt."
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No, not at all. He has ensured a second, third, fourth…okay PERPETUAL recession will occur over and over again. Each time it happens, it will allow him to reign in more power as each person becomes more dependent upon the government to secure the most basic future. (food, shelter, clothing..)
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Yes
And how has this "Debt" affected you?
That should be the next question.
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No where in the article it mentioned whether Obama has " doubled " the national debt.
When Bush left we had a 9.7 trillion national deficit and now its 10 trillion
you are obviously not mentioning the failed 8 yrs of Bush/Republican rule which is the sole reason for the this amounting debt
Don’t twist the facts if you can’t give one
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Yes. I think it is wonderful that Obama and the Democrats are bankrupting the future generations. Just think, a child born today when he or she is 30 will be paying an 82% Federal income tax on their paycheck just to service the debt. (sarcastic remark in answering YES!)
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Not true. MSNBC was saying the Rep party now consist of white angry men and less educated people. In other words it is now the stupid party. Bachmann and Palin are the perfect leaders for these dolts. The blind leading the blind.
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Bush doubled the debt without spending any of it on America. Obama has added to the debt by spending money on America… to fix the mess that Bush made… and to put America in a position to pay off the debt. your solution seems to be… keep the debt AND make sure the US can never pay it off.
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No, and it’s too soon to say anyway.
But please see the link below. lol
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http://zfacts.com/p/318.html
More appropriately, will our grandchildren and their children be happy about the debt Obama has created since they will be repaying it.
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I was wondering how far down the line of answers I would have to get before Bush was mentioned. It didn’t take long. Obama is in a headlong rush to kill this country. How long will Americans stand for this?
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President Obama’s term has just begun, and he has plans to cut costs and reduce the deficit. Yes, he handed out billions of dollars in quick LOANS to banks, auto retailers and so on. LOANS get repaid. He also has plans to reduce expenses and reduce the deficit.
Contrast that with Bush’s spending on Blackwater, Haliburton, et al, and the MISSING TRILLIONS. How come you aren’t asking about that?
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Check out these graphs and you will see that Republican Presidents consistently outspend Democratic Presidents…
http://images.google.com/images?hl=en&rlz=1T4GGLJ_enUS301US302&q=deficit%20by%20president&um=1&ie=UTF-8&sa=N&tab=wi
A detailed article about Obama’s plans to bring down the deficit:
http://personalmoneystore.com/moneyblog/2009/02/23/string-quick-loans-obama-plans-shrink-national-debt/
Of course…I am equally thrilled that ‘Dubya’ got us into debt in the first place and am also thrilled he got us into an expensive, unpopular war by lying.
Yes, Obama trying to fix the economy in part based on advice by financial experts when I, a person who doesn’t always balance her checkbook very well, can do so much better a job (I’m guessing like you!)…why, that’s just silly.
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Yes. That’s why we need to raise taxes on the rich in a big way. Raise the income tax rate for the wealthiest 5%, raise capital gains tax rates and taxes on windfall inheritances for the rich as well. We could pay off the entire debt in 5 years if we did this, and the standard of living of the rich would not be affected at all. They would just whine and complain that they only have $100 million instead of $150 million.
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common sense
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