Household borrowing in the UK is rising to dangerous levels. Should the economy take a downturn, many would be in grave financial difficulty. Although wages are forecast to grow, household borrowing is forecast to grow 2.7 times as fast. QuidCycle has a solution, read on to find our more.
Recent articles in the CBC News and The Globe and Mail in Canada warn about the dangers of high household borrowing. They state that many in Canada are vulnerable as a result of high household borrowing and that should the economy take a downturn, they would be in grave financial difficulty. The current levels in Canada are believed to be approaching the UK and US levels during the 2007 financial crisis.
What does this mean for those in the UK? Are we in a better position? An article in the Economic Voice dated 12th February reveals that according to the Trade Unions Congress analysis which uses forecasts by the Office for Budget Responsibility to compare earnings and household borrowing for the period from 2015 to 2019 - while wages are forecast to grow at 16% over the aforementioned period, total household borrowing is forecast to grow 2.7 times as fast, at a rate of 42%. Even more concerning, is that their analysis reveals that unsecured household borrowing is forecast to grow 4.5 times as fast as wages, that means 70% between 2015 and 2019. Households are expected to reach an average of around £29,000 of borrowing per household by 2019. This would mean that if forecasts are met, total UK household borrowing in 2019 will be 182% of household income. This is significantly higher than the 167% immediately before the 2008 crash.
Forecast for UK wages and household borrowing from 2015 to 2019 (Economic Voice article 12th February 2015) -
*Research has shown that the number one source of stress in UK homes is personal finance. Furthermore, 1 in 4 people struggle in silence with their finances. Many traditional financial firms have been set up to benefit the industry and this is not right.
Have you ever wondered ……….
Why we only get finance advice when things are desperate and those that offer to help often take advantage?
Why UK’s middle-income families work so hard, contribute so much to the success of the economy, and yet struggle to be financially successful?
Why the big banks take so much credit card interest, but return so little on savings accounts. What happens to all that excess money?
Why is it that only the select few are offered access to a decent return on their investments when they already have so much and don’t really need more?
At QuidCycle we don’t think that any of this is fair and our mission is to provide helpful products that really do help you manage your money so that everyone has a chance at financial success. There are many who are struggling to find this financial freedom, who feel their minimum payments will last forever and have responsibly tried to pay them off but are met time and time again with exorbitant interest rates. At QuidCycle, we offer a reasonable rate to help eliminate your bills faster and instead of ‘motivating’ you with unreasonable penalties, we will actually reward you if you meet all of your repayments, complete a short course of online financial education and meet with an advisor which we provide and pay for, who can help you even more. There is no need to suffer in silence; there is a better and easier way to deal with your finances through QuidCycle. Our unique approach has set us apart from our peers and some have described QuidCycle as “dealing with the core problem around irresponsible credit”.
Not only will we help you turn your finances around, but we will also work with you to start putting aside money and become a investor. For those struggling to see their nest egg grow, we offer a higher rate of return than traditional savings and have provisions in place to minimise your risk while taking advantage of a new type of investment product. You will get a regular payment each month, which if you choose to reinvest, compounds your earnings even more! So while big banks take advantage of borrowers chasing the wealthy with glamorous investment products and the payday loan companies exploit the most vulnerable, QuidCycle concentrates on consolidating debt, providing strong returns and education along the way for those people who deserve it most – the UK’s middle income families. Visit us and find out more at www.quidcycle.com. Your capital is at risk with peer-to-peer lending.
*Based on QuidCycle research, conducted by Atomik Research among a weighted UK representative of 2,000 adults in August 2014?
Disclaimer: Please ensure you seek independent financial advice before making any decisions regarding your finances.