Consolidators ‘trapped in debt cycle’
September 12, 2007 by admin
Filed under News, News-Loans
New research released by price comparison website moneysupermarket.com has revealed that many people who use debt consolidation services immediately start accumulating new debt on top of their consolidated loan.
Already over a quarter of the population (28 per cent) has taken out a loan to amalgamate all of their existing borrowings into a single, more manageable, monthly repayment schedule.
But the worrying new survey shows that instead of borrowers using consolidation as an opportunity to lift themselves out of debt, a majority (66 per cent) are continuing to sink deeper into the red.
Among consolidators, at least five per cent have gone on to take out another loan while 12 per cent are making use of their high-interest-rate overdraft facility. Some 28 per cent use their credit card as an extra source of credit and 21 per cent admit to doing a mixture of all of the above.
Tim Moss, head of loans and debt at moneysupermarket.com, said: “Debt has become the common curse of modern times. People need to be careful that the ease of getting credit doesn’t catch them out – it can soon spiral into a debt sentence.”
Statistics compiled by Credit Action show that total UK personal debt at the end of July 2007 stood at £1,355 billion. Every day more than 300 people in the UK are declared insolvent or bankrupt.
You could get a better deal with annual travel insurance
May 26, 2007 by admin
Filed under News, News-Insurance
According to officials from MoneyExpert buying annual travel insurance cover could work out cheaper than opting for single trip cover, although experts do warn that consumers need to carefully check the policies to see what is and isn’t covered before making any commitment.
According to researchers from MoneyExpert some annual travel insurance policies can work out cheaper than single trip policies, but consumers must check that they are adequately covered.
One MoneyExpert official stated: “Holiday makers often think that single trip cover is simple and cheap, but the truth is it’s often not best value for money. You are certainly paying for a quick fix. As with all insurance, the quality of cover will always vary so like-for-like comparisons are quite difficult to make. Nevertheless it remains the case that you can get annual travel insurance for the whole family without breaking the bank. Focusing on price alone can mean holidaymakers will be left with insurance that is not worth the price. Insurance policies are only tested when you need to make a claim. You don’t want to find out when you are making a claim that you’ve saved money at your expense.”
MoneyExpert officials have warned that although it can be cheaper to take out annual cover, consumers should take into consideration the quality of the cover as well as the price. It is important to ensure that you compare different policies, and know exactly what you are and are not covered for in order to ensure that you get proper value for money with your travel insurance policy.
According to Sean Gardner from MoneyExpert: “Average prices provide a guide as to what to look for. It is then up to holidaymakers to probe a little deeper to find the policy that suits them best.”
Tom Smith
26th May 2007
