According to the Office for National Statistics, the average U.K. household debt in June 2012 was £7,854 excluding mortgages and £55,448 including mortgages. The average consumer borrowing per U.K. adult in June was £4,205 including unsecured loans, overdrafts, credit cards, motor and retail finance deals.
With the financial difficulties a lot of U.K. households and businesses still face, it’s vital to rethink your financial policies to avoid further money issues.
Consider taking a logbook loan if you need some extra cash for giving your business a kick-start. Unlike banks and other lending institutions, companies giving out loans secured on cars don’t require credit research so you receive up to £5,000 without having to endure verifying procedures.
If you’ve decided to apply for a loan secured on a car, do a thorough search as rules differ from company to company and it’s important to find fair interest rates.
Get insurance for your business as soon as you receive money, if you haven’t done it yet. Do research and compare rates to determine what kind of coverage you need and check if you are eligible for discounts.
If you need financial advice on your particular situation, look for a financial planner. If you’re pressed for money, look for commission-based planners who take part of the profit they help you receive.
Ask your bank for free services as some banks offer their customers basic financial consultations free of charge. Online tools and financial management information are also provided by many banks.
The U.K. economy has suffered two recessions and people have already been hit by several bank scandals. The British are learning to act smart as they are “more disillusioned with the banking sector than ever”, a survey by Which? shows. About 71% of the surveyed people choose not to trust banks and prefer alternative sources of money such as logbook loans.