Secured loans 'prompting need for two incomes’ - Loans - News - Moneyfacts


Secured loans 'prompting need for two incomes’

Secured loans 'prompting need for two incomes’

Category: Loans

Updated: 25/06/2009
First Published: 27/11/2008

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Research has found that families are being forced to rely on more than one income due to debts and the rising cost of living.

The average household with dependent children carried £9,359 in secured and unsecured loans over the last three months, Scottish Widows has found.

And that is in addition to the £88,500 outstanding on mortgages.

In order to maintain a comfortable standing of living nearly half of households are relying on more than one income, with 61 per cent of families with children needing at least two breadwinners.

Richard Jones, protection market director at Scottish Widows, remarked: "For many households, living with debt has become an acceptable situation. While the country was enjoying economic boom this was sustainable but now everyone has to tighten their belts more than ever." this week advised consumers to use the 2.5 per cent cut in value added tax to help repay secured loans.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Regulator to take closer look at high-cost credit

When used well, credit can be a viable way to help make ends meet and balance the books – but the problem comes when that credit is of the high-cost variety. The regulator has will be taking a closer look at the sector to see what else can be done.

The payday loan market is still broken

The payday loan market has been under fire a lot in recent years, and as a result, the financial regulator stepped in. But has it made a difference? Unfortunately, it looks as though there’s still a lot of work to be done.

Get a record low rate loan - if you qualify

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…