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Borrowing Levels 'Are High'
Britons are borrowing an increasing amount of money, new research shows.
In the latest Savings Brake study carried out by Unbiased, lending through the likes of credit cards, loans and overdrafts accounted for some 11.7 billion pounds between July and September, a figure about double of that recorded during the preceding quarter. Meanwhile, findings from the firm also indicated that savings decreased by more than 11 billion pounds over the course of the third quarter of 2007. Overall, for every pound the typical Briton saved during the third quarter of the year, some 35 pence was borrowed. According to the company this represents a “significant increase” from the 13 pence per pound borrowed during the previous three-month period.
According to the company, the recent climate of high interest rates has seen many Britons dip into their savings accounts or take out a loan in an attempt to help cope with various financial constraints over the summer, including holidays. In addition, the credit crunch and its subsequent impact on the availability of cheap UK loans was also reported to have had an impact on consumers’ capacity to handle their money.
Commenting on the figures, David Elms, chief executive of Unbiased, said: “We have seen a lot of activity in the financial markets in the third quarter of 2007, which marked the beginning of the Northern Rock crisis. Interest rates over the summer were still at a high level of 5.75 per cent and many people will have felt the impact of the credit crunch starting to bite their disposable income.
“While the high level of borrowing and a drop in savings for this quarter may come as no surprise, it is a worrying development. And with the cost of Christmas about to hit the nation’s pockets over the next couple of months it is unlikely that we will see a significant improvement in the Savings Brake ratio.”
As a result, Mr Elms advised it is crucial that consumers take the time to take steps to take control of their financial situation. And that their level of savings and borrowing, whether this is through loans, plastic cards or other means, remains at “a healthy level”.
For those concerned about either their ability to save adequately for later life or about the level of money owed in personal loans, overdrafts, store cards and other forms of borrowing, taking out a loan for debt consolidation purposes may prove to be useful. And applying for such a loan may be useful for a rising number of people. A recent study carried out by Alliance & Leicester showed that following the series of interest rate increases since August 2006, households are feeling “less comfortable” in managing various areas of their finances, as the subsequent rise in mortgage costs impinges upon their ability to pay back loans and other monetary demands.
The study also indicated consumers put just 2.1 per cent of their salary into a savings scheme during the first quarter of this year, a record low. Although this proportion increased to 3.1 per cent between April and June, the financial services firm stated that is still below the decade-average of six per cent. As a result, applying for a cheap consolidation loan could help consumers drastically reduce their borrowing and free up more money to invest into savings accounts.
Six Million Final Stage Foreclosures In America by 2014
In the United States, a Bank Repossession of a home is the last part of the foreclosure procedure that usually involves three foreclosure notices. This is typically the stage at which a struggling homeowner is forced onto the street. When the media reports on a certain amount of foreclosure cases in a particular month, this figure includes cases that are in any of the three stages of the foreclosure process.
A reputable source of information on foreclosures in America that is found in the public domain takes the form of RealtyTrac. RealtyTrac collects and organizes data on foreclosure filings that occur at a local level throughout the country. Detailed reports on foreclosures are released by them at a fee, although it does release limited amounts of information at no cost which are provided to various media outlets.
Foreclosure Statistics so Far
There are at this time no governmental agencies that report on the massive extent of damage suffered by the housing market as a result of the questionable tactics employed on the part of Fannie and Freddie, along with Wall Street. Since the beginning of 2005, an alarming 3.7 million families have been forced onto the street. Considering an average of 2.3 people per family, that translates into approximately 8.5 million Americans who have lost their homes. It will indeed take some years yet for the full impact of the greed and corruption that has severely damaged the housing market to be fully witnessed and comprehended.
Foreclosure Numbers Expected to Rise – Based on independent research of RealtyTrac figures, it has been estimated that as many as six million households will suffer the loss of their homes before the worst of the housing crisis has come and gone. It’s nearly impossible to understand the awful level of personal tragedy represented by these kinds of statistics if one has not been personally affected by it.
Due to the backlogs present in foreclosure procedures and the delays involved in the filing process (it took an average of 150 days to resolve one foreclosure case in 2007), we can be certain that comprehensive foreclosure figures are sure to rise in the few years that lie ahead.
Loan modification process
The loan modification process, if undertaken responsibly and with an informed approach, is able to provide families with real hope in their efforts to hold on to homes that are precious to them for many valid and understandable reasons. If only there was a way to ensure that people had access to truthful information and expert guidance as they explore the loan modification process.
Some of the things that a loan modification applicant should be aware of is whether or not they are pre-qualified financially, and how best to prepare their loan modification package. We do not provide advice as to whether or not pursuing loan modification represents the best course of action in a specific situation. We view our role as informing prospective applicants of the possible outcomes if they are intent on heading down that path. Knowing your potential qualification chances is critical, and since banks opt to keep that secret, we are committed to making that knowledge available to you. This empowers you. You have a right to know where you stand from the get go.
For more information on how to best qualify for a loan modification, please visit