When the credit crunch commenced in the first half of 2007 no one at first really took the situation too seriously.
All through history there are times of rises and dips in the economy.
When the general public heard that the Northern Rock was not as stable as it ought to have been the public was more alerted that the banking industry was in dire trouble.
Looking at the news both in the press and also seeing long queues of investors outside the branches of the ailing building society waiting to withdraw all their savings did alert the public to the fact that the banking sector of the UK was in trouble.
Even then little could the general public have thought that even after the Northern Rock had been nationalised and was now totally state owned, that the general economy of the country could become so depressed.
Jobs were cut throughout many industries and the construction industry in particular suffered as building site after building site closed down.
Sites that had been so vibrant only months before, with major house builders like Cala, Persimmon, Charles Church, Manor Kingdom who specialise in the field of more up market property, lay empty wih properties that no one wanted to buy.
The building industry had never been in such a bad state for sixty years.
Other firms, in an effort to remain trading, cut the salaries of some of their work force while the even less fortunate members of staff were made redundant.
The economy fell and the country was in finacial difficulty.
However in 2007, dire though the situation was ,nobody could have believed that almost three years later the economy of the country would be little if any better.
Human nature being what it is and hope springing eternal, the population, although often struggling financially to cope with their financial commitments, always thought that the economy would improve at any time and put off making a move to rearrange their finances.
Now at the end of yet another year, homeowners in particular have been reaching the conclusion that the time has come to consolidate their outgoings.
As such they are taking out remortgages and secured loans to arrange debt consolidation.
Debt consolidation involves arranging a secured loan or a remortgage which consolidate all debts on credit cards, personal loans, hire purchase, etc. and combines them into one much lower repayment each month.
Credit cards normally have an interest rate of at least 20% but mainly the interest rate is higher than this figure and can often stand at the disgustingly high rate of 40% or even more.
The starting APR for remortgaging is.98% for homeowners who have a maximum LTV on their property of 60%.
Even for those who have a maximum LTV of 70% can obtain the low rate of 1.99%.
Secured loans have interest rates starting round about 9% at this present time.
When these rates for a remortgage or a secured loan are compared against the interest rates for credit cards, etc. it goes without saying that great savings can be made by swapping high interest financial outgoings for much lower rate remortgages and secured loans.
Therefore as the economy is not yet out of recession in the UK the way to save money to sort out personal economy is by means of a remortgage or a secured loan.
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