Credit Repayment Times Are Extending

While overall borrowing in the UK may be on the up, people
are succeeding in better managing their loans and other
finances, one commentator has suggested.

Loans firm Picture Financial has suggested that credit
levels are on the increase but states that as consumers
borrow more they are getting savvier about which loans or
other products they choose. Julia Dallimore, marketing
director at the company, remarks: "Our UK credit levels may
seem high but with the vast majority of this taken up by
mortgages and other secured lending we are increasingly
spreading our credit repayments over longer periods to
better manage our monthly finances."

The firm was reacting to research released today by
business advisory company Grant Thornton which has
contended that consumer borrowing has outstripped the
national gross domestic product for the first time. It was
announced that British consumers currently hold debts
consisting of loans, mortgages and borrowing on credit
cards amounting to 1,345 billion pounds, for the first time
exceeding the overall production of the British economy
believed to be 1,330 billion pounds. "The research issued
today highlights that we are a nation of significant credit
users, however, many of us use our borrowing as an
acceptable means of maintaining our standard of living," Ms
Dallimore stated.

However, Picture Financial adds a note of warning - while
people may be beginning to approach their finances from a
better informed position, repeated increases in the
interest base rate will continue to put pressure on
household budgets. The firm believes that those consumers
who have borrowed from a number of different sources and
are struggling to balance repayments on their loans might
benefit from debt consolidation as a way of restructuring
their credit. "It is important for people to ensure that
they review their credit arrangements and, if necessary,
restructure their borrowing to allow themselves greater
financial freedom each month," Ms Dallimore explains. "This
can mean taking the time out to seek independent advice,
switching to credit providers with more favourable rates or
consolidating all borrowing into one place."

The company asserts that gaining a thorough understanding
of your outgoings and monthly finances can be useful in
ascertaining whether repayments can be comfortably covered.
The advice follows recent statements from the UK Insolvency
Helpline which urged consumers struggling with debt to
write a budget. Calculating the difference between income
and living costs can give a good indicator of how much
could be considered spare income and how much is available
for paying off loans.

Ian Boden-Smyth, spokesperson for the lawyer and
accountancy network, also recommended any consumers
experiencing problems or foreseeing future difficulties to
get advice from professionals who can help to draw up a
budget as well as provide guidance.

Recently, Picture Financial published research which
suggested that despite worries about their ability to
control their finances, millions remain unhappy about the
prospect of discussing their financial situation. The firm
found that Britons were more comfortable discussing sex,
current affairs and religion than broaching the subject of
financial difficulty.

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Abbi Rouse writes for All About Loans where visitors can
apply online for cheap loans. We also specialise in bad
credit loans, and debt consolidation loans. Vist Today:
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