Britons who are concerned about their finances should get on top of them as soon as possible, rather than waiting until it is too late, it has been advised.
Identifying where expenditure can be reined in during the current economic downturn could be a wise step for individuals to take. This could include stopping spending on credit cards, paying off high-interest personal loans or leaving store cards alone when tempted by the initial savings.
A spokesperson for aap - the UK's biggest buyer of endowment policies - said some of its customers had sold their underachieving endowment policies to organise their family debt management commitments.
Moneywise noted that budgeting on a monthly basis could be ideal for many Britons who get paid once every four weeks. As well as regular financial commitments - such as monthly debt repayments - people should take into account unexpected expenditure which could leave a dent in their finances.
"This exercise will, for many of us, turn the spotlight on one major problem - a shortage of cash," the resource stated.
"Next, consider ways of reducing your expenditure on essentials and non-essentials. Take a look at some simple steps that could help boost your cash levels without forcing you to cut back on anything," Moneywise added.
Britons who are struggling with their debt and do not want to fall back on essential financial commitments such as bills and rent may have started to address how they can obtain extra cash.
Rather than falling into further debt, people may want to clear the money they owe with a lump sum of cash, allowing them to stay afloat during the credit crunch.
Individuals who have already considered selling their unwanted endowment policies may not realise that selling a policy on the secondary market is another option available to them.
A spokesperson from aap - a company which specialises in buying endowment policies - added that if the firm decides to make an offer to buy an endowment, it will always pay more than the surrender value offered by the insurance company.
Source
Tuesday, December 15, 2009
Saturday, November 28, 2009
Selling your endowment policy 'could provide a financial cushion'
Britons have an estimated 38 million unused credit cards lying around with a combined credit limit of £200 billion, new research has revealed.
Almost one in ten consumers admit they have as many as four credit cards which they no longer use, while seven per cent have five or six stored away, the survey by uSwitch.com found.
Louise Bond, personal finance expert at the website, said with unemployment and the current credit crunch, it is no wonder why some people feel they should hang on to their credit cards, in case they need a financial cushion.
There could be other ways to make a household more monetarily stable. Britons who have already considered raising money through surrendering their unwanted endowment policies may not realise that they could get more than their insurance company could give them by selling their policies on the secondary market to firms such as aap.
When broken down, credit card hoarders have an average £11,969 to dip into should they find their household income is reduced, or an unexpected large expenditure is required.
"Hoarding as many as six unused credit card accounts is excessive. It is a problem for both the credit card industry and individuals," Ms Bond said.
"In recent years, we have seen providers close down these accounts or, in some cases, introduce a fee for consumers that don't use their credit cards."
Many Britons may be holding on to credit cards as a financial safety net should an unexpected event occur, such as redundancy.
With recent figures from the Office for National Statistics showing that UK unemployment continues to rise, having a spare credit card may give some consumers peace of mind.
However, consumers should be cautious of returning to credit in order to give them the financial security they are looking for in case household income drops in the future and they cannot pay off the balances.
For those Britons who have already considered disposing of their unwanted endowment policies - and may have decided to surrender them - there could be another way.
A spokesperson for aap - the UK's biggest buyer of endowments - said that selling a policy on the secondary market could give people a financial cushion they are looking for. Some of aap's customers have already sold their underachieving endowments to meet debt management commitments.
He added that if aap decides to make an offer on an endowment, it will always pay more than the surrender value.
Source
Almost one in ten consumers admit they have as many as four credit cards which they no longer use, while seven per cent have five or six stored away, the survey by uSwitch.com found.
Louise Bond, personal finance expert at the website, said with unemployment and the current credit crunch, it is no wonder why some people feel they should hang on to their credit cards, in case they need a financial cushion.
There could be other ways to make a household more monetarily stable. Britons who have already considered raising money through surrendering their unwanted endowment policies may not realise that they could get more than their insurance company could give them by selling their policies on the secondary market to firms such as aap.
When broken down, credit card hoarders have an average £11,969 to dip into should they find their household income is reduced, or an unexpected large expenditure is required.
"Hoarding as many as six unused credit card accounts is excessive. It is a problem for both the credit card industry and individuals," Ms Bond said.
"In recent years, we have seen providers close down these accounts or, in some cases, introduce a fee for consumers that don't use their credit cards."
Many Britons may be holding on to credit cards as a financial safety net should an unexpected event occur, such as redundancy.
With recent figures from the Office for National Statistics showing that UK unemployment continues to rise, having a spare credit card may give some consumers peace of mind.
However, consumers should be cautious of returning to credit in order to give them the financial security they are looking for in case household income drops in the future and they cannot pay off the balances.
For those Britons who have already considered disposing of their unwanted endowment policies - and may have decided to surrender them - there could be another way.
A spokesperson for aap - the UK's biggest buyer of endowments - said that selling a policy on the secondary market could give people a financial cushion they are looking for. Some of aap's customers have already sold their underachieving endowments to meet debt management commitments.
He added that if aap decides to make an offer on an endowment, it will always pay more than the surrender value.
Source
Sunday, November 15, 2009
Selling your endowment policy 'could help meet debt management needs'
An increasing number of Britons are defaulting on their credit card repayments, numerous sources show, a problem which could be compounded by the current unstable job market.
The Organisation for Economic Co-operation and Development has raised concerns about the financial state of Britain, with many UK families struggling to meet their personal debt commitments.
Chris Radford, chief executive officer (CEO) for aap - the UK's biggest buyer of endowment policies - said that some of its customers had sold their unwanted endowment policies for their household debt management needs.
Finding the money to clear credit card debt could be a wise option. Speaking to the Daily Mail, Peter Sargent, a partner at insolvency specialists Begbies Traynor, said some families have no savings to fall back on when times get tough.
"More and more people are staring financial ruin in the face. The number defaulting on their credit-card debts is growing and therefore the number of personal insolvencies will grow over the next two years," he told the newspaper.
He said when individuals are in stable employment the prospect of clearing personal debt may not be as daunting, "but if they lose their job they've had it".
Some individuals may turn to the estimated 38 million unused credit cards lying around the home, which have a combined credit limit of £200 billion, to meet their financial commitments, uSwitch.com recently revealed.
This tactic may not be a wise move to make, as this could leave people further in debt. And many consumers could be rejected from obtaining credit in the future, because of their history of defaulting. A rejected application could leave a blemish on the credit history of individuals.
Rather than relying on more credit as a financial crutch, Britons may want to assess other ways in which to clear their climbing credit card debt.
Aap CEO Chris Radford said that some of the firm's customers had sold their unwanted endowment policies to keep on top of debt management commitments.
Individuals who have already considered surrendering their underperforming endowment policies may not realise that selling it to a secondary market maker such as aap could see them obtain more cash.
Source
The Organisation for Economic Co-operation and Development has raised concerns about the financial state of Britain, with many UK families struggling to meet their personal debt commitments.
Chris Radford, chief executive officer (CEO) for aap - the UK's biggest buyer of endowment policies - said that some of its customers had sold their unwanted endowment policies for their household debt management needs.
Finding the money to clear credit card debt could be a wise option. Speaking to the Daily Mail, Peter Sargent, a partner at insolvency specialists Begbies Traynor, said some families have no savings to fall back on when times get tough.
"More and more people are staring financial ruin in the face. The number defaulting on their credit-card debts is growing and therefore the number of personal insolvencies will grow over the next two years," he told the newspaper.
He said when individuals are in stable employment the prospect of clearing personal debt may not be as daunting, "but if they lose their job they've had it".
Some individuals may turn to the estimated 38 million unused credit cards lying around the home, which have a combined credit limit of £200 billion, to meet their financial commitments, uSwitch.com recently revealed.
This tactic may not be a wise move to make, as this could leave people further in debt. And many consumers could be rejected from obtaining credit in the future, because of their history of defaulting. A rejected application could leave a blemish on the credit history of individuals.
Rather than relying on more credit as a financial crutch, Britons may want to assess other ways in which to clear their climbing credit card debt.
Aap CEO Chris Radford said that some of the firm's customers had sold their unwanted endowment policies to keep on top of debt management commitments.
Individuals who have already considered surrendering their underperforming endowment policies may not realise that selling it to a secondary market maker such as aap could see them obtain more cash.
Source
Wednesday, October 28, 2009
Will the interest rate decision affect selling an endowment?
The Bank of England yesterday confirmed that interest rates are to stay at 0.5 per cent this month. Aside from this, the Bank also confirmed it is to extend its quantitative easting programme by a further £50 billion.
While the Bank of England has now kept interest rates at 0.5 per cent for months, steps are being taken in other areas to try and improve the country's economy.
A low interest rate may be beneficial for some borrowers, thanks to the effect it has on commercial banks' interest rate charges. However, while low rates may ease the pressure for some, others may have taken steps to reorganise their mortgage borrowing.
Some people with underperforming endowment policies have chosen to sell their policy in order to reorganise their borrowing, said Chris Radford, chief executive of aap, the country's leading buyer of endowment policies. Others who had considered disposing of their underperforming endowment may not have realised that selling the policy is another option that may be available.
Mr Radford said that should aap decide to make an offer to buy, it would always pay more than the surrender value.
Lower interest rates may have helped consumers struggling with interest payments to some degree, although other efforts are being made by high street banks to repair their balance sheets.
Some may be restricting the availability of credit, the Bank of England noted in its statement confirming yesterday's decision.
While this may bring long-term benefits for the state of the nation's economy, individual consumers looking to make changes to their mortgage and debt arrangements may face a degree of difficulty.
However, different options are available. Some customers who were looking to rearrange their household borrowing because of an underachieving endowment policy chose to sell rather than surrender their endowment as part of their financial restructuring efforts, Mr Radford said.
Besides the interest rate remaining the same, other factors are affecting the current state of the economy. Consumer prices index inflation fell to 1.8 per cent in June, 0.2 per cent below the target level, helping to put less pressure on the purse strings.
The Bank has extended its asset purchase scheme by a further £50 billion to £175 billion - a move which the Bank believes will help to create stability in the medium term.
The full effect of this programme on the state of the national economy will take time to become apparent.
While the Bank of England has now kept interest rates at 0.5 per cent for months, steps are being taken in other areas to try and improve the country's economy.
A low interest rate may be beneficial for some borrowers, thanks to the effect it has on commercial banks' interest rate charges. However, while low rates may ease the pressure for some, others may have taken steps to reorganise their mortgage borrowing.
Some people with underperforming endowment policies have chosen to sell their policy in order to reorganise their borrowing, said Chris Radford, chief executive of aap, the country's leading buyer of endowment policies. Others who had considered disposing of their underperforming endowment may not have realised that selling the policy is another option that may be available.
Mr Radford said that should aap decide to make an offer to buy, it would always pay more than the surrender value.
Lower interest rates may have helped consumers struggling with interest payments to some degree, although other efforts are being made by high street banks to repair their balance sheets.
Some may be restricting the availability of credit, the Bank of England noted in its statement confirming yesterday's decision.
While this may bring long-term benefits for the state of the nation's economy, individual consumers looking to make changes to their mortgage and debt arrangements may face a degree of difficulty.
However, different options are available. Some customers who were looking to rearrange their household borrowing because of an underachieving endowment policy chose to sell rather than surrender their endowment as part of their financial restructuring efforts, Mr Radford said.
Besides the interest rate remaining the same, other factors are affecting the current state of the economy. Consumer prices index inflation fell to 1.8 per cent in June, 0.2 per cent below the target level, helping to put less pressure on the purse strings.
The Bank has extended its asset purchase scheme by a further £50 billion to £175 billion - a move which the Bank believes will help to create stability in the medium term.
The full effect of this programme on the state of the national economy will take time to become apparent.
Thursday, October 15, 2009
Selling endowments 'could help with school fees'
Many local authorities in Britain are experiencing a shortage of school places, with one main reason being put down to parents taking their children out of private education because they cannot afford the fees.
The number of school places required to accommodate youngsters will need to increase in the long term because of a rise in birth rates, the Local Government Association said.
However, it also noted that in the short term, many mums and dads are unable to pay private school fees because of the current economic downturn. Some parents are placing their offspring into state schools instead, further reducing the number of places available.
Chris Radford, chief executive officer (CEO) of aap - the UK's biggest buyer of endowment policies - said parents who had already considered an endowment policy surrender also have the option to sell their policy to a secondary market maker such as aap, rather than surrender the policy to their insurance company.
The problem of state school shortages is particularly noticeable in London, which houses a number of private schools including Abercorn School, Bales College and Gower House School.
London Councils previously announced that during this financial year, more than 2,250 children will be without a reception place. This will increase to more than 18,300 by 2014.
"Changes in London's demographics, combined with the impact of the recession, have led to an extraordinary rise in demand for new reception places, leaving many schools with little or no capacity to take on new pupils," London Councils said.
While the government announced £200 million of funding to build new primary school places across the UK, the group asserted that London alone needs £740 million to ensure every five-year-old has a reception place over the next five years.
Parents who are struggling with the private school fees of their children may not want to take their youngsters out of a private establishment, given the shortage of state school places.
However, the current economic climate may make it difficult for them to continue to pay the fees, which are expected to rise once again to offset higher costs that need to be met by private schools.
One way to meet the cost of private education could be for parents or grandparents to release the cash in their endowment policy, rather than needing to dip into savings or disrupt their children's education.
Aap CEO Mr Radford said Britons who had already considered surrendering their unwanted endowment policies to raise money may not realise that selling is another option.
He added that should aap decide to make an offer to buy a policy, it will always pay more than the surrender value offered by the insurance company.
Mr Radford continued, adding that a child’s education is always an important decision for any family. "So ensuring you get your financial arithmetic right could help give your child the best start in life."
Source
The number of school places required to accommodate youngsters will need to increase in the long term because of a rise in birth rates, the Local Government Association said.
However, it also noted that in the short term, many mums and dads are unable to pay private school fees because of the current economic downturn. Some parents are placing their offspring into state schools instead, further reducing the number of places available.
Chris Radford, chief executive officer (CEO) of aap - the UK's biggest buyer of endowment policies - said parents who had already considered an endowment policy surrender also have the option to sell their policy to a secondary market maker such as aap, rather than surrender the policy to their insurance company.
The problem of state school shortages is particularly noticeable in London, which houses a number of private schools including Abercorn School, Bales College and Gower House School.
London Councils previously announced that during this financial year, more than 2,250 children will be without a reception place. This will increase to more than 18,300 by 2014.
"Changes in London's demographics, combined with the impact of the recession, have led to an extraordinary rise in demand for new reception places, leaving many schools with little or no capacity to take on new pupils," London Councils said.
While the government announced £200 million of funding to build new primary school places across the UK, the group asserted that London alone needs £740 million to ensure every five-year-old has a reception place over the next five years.
Parents who are struggling with the private school fees of their children may not want to take their youngsters out of a private establishment, given the shortage of state school places.
However, the current economic climate may make it difficult for them to continue to pay the fees, which are expected to rise once again to offset higher costs that need to be met by private schools.
One way to meet the cost of private education could be for parents or grandparents to release the cash in their endowment policy, rather than needing to dip into savings or disrupt their children's education.
Aap CEO Mr Radford said Britons who had already considered surrendering their unwanted endowment policies to raise money may not realise that selling is another option.
He added that should aap decide to make an offer to buy a policy, it will always pay more than the surrender value offered by the insurance company.
Mr Radford continued, adding that a child’s education is always an important decision for any family. "So ensuring you get your financial arithmetic right could help give your child the best start in life."
Source
Monday, September 28, 2009
Selling your endowment 'could help fund home renovations'
An increasing number of people are renovating older properties to make them more energy efficient, rather than moving, it has been revealed.
The current economic climate could make moving home an unattractive option, especially with the potential necessity to significantly lower an asking price in order to attract buyers.
However, the Times has reported that some homeowners are making their current properties more energy efficient in order to lower their home heating bills. But such extension work could come at a price.
Chris Radford, chief executive officer (CEO) of aap - the UK's biggest buyer of endowment policies - said many of its customers had sold their unwanted endowments in order to renovate or improve their house, rather than moving.
Speaking to the newspaper, Sarah Harrison, an environmental consultant, has told how she renovated her unmodernised Victorian semi. She fitted "state-of-the-art double glazing", invested in solar panels and a rainwater-harvesting system, as well as installing a wood-burning stove.
"We turned off the heating in March and we have only needed to turn it on twice, for an hour each time, since," Ms Harrison said.
Her household carbon emissions have been cut by 70 per cent and she uses 30 per cent less water. Indeed, the recent Halifax Home Improvement Survey revealed that green home improvements have risen in popularity as many homeowners think they will get good value for money with the future cost savings they could deliver.
Despite such savings, the initial work can be expensive. Ms Harrison paid £17,000 for her home improvements and other eco repairs, the newspaper noted.
Some Britons may decide to make their property as green as possible in order to save money on home heating bills further down the line, especially as the cost of fuel has increased.
However, as the newspaper noted, it can cost a large amount of money, a sum which many households may not have to hand during the current recession.
Rather than get into debt to fund extensive home improvements, some individuals may be addressing ways in which to raise the cash.
People who have already considered selling their endowment policies may not realise that selling their policy is another avenue they could go down.
CEO of aap Chris Radford stated that should the firm decide to make an offer to buy an endowment, it will always pay more than the surrender value offered by the insurance company.
Source
The current economic climate could make moving home an unattractive option, especially with the potential necessity to significantly lower an asking price in order to attract buyers.
However, the Times has reported that some homeowners are making their current properties more energy efficient in order to lower their home heating bills. But such extension work could come at a price.
Chris Radford, chief executive officer (CEO) of aap - the UK's biggest buyer of endowment policies - said many of its customers had sold their unwanted endowments in order to renovate or improve their house, rather than moving.
Speaking to the newspaper, Sarah Harrison, an environmental consultant, has told how she renovated her unmodernised Victorian semi. She fitted "state-of-the-art double glazing", invested in solar panels and a rainwater-harvesting system, as well as installing a wood-burning stove.
"We turned off the heating in March and we have only needed to turn it on twice, for an hour each time, since," Ms Harrison said.
Her household carbon emissions have been cut by 70 per cent and she uses 30 per cent less water. Indeed, the recent Halifax Home Improvement Survey revealed that green home improvements have risen in popularity as many homeowners think they will get good value for money with the future cost savings they could deliver.
Despite such savings, the initial work can be expensive. Ms Harrison paid £17,000 for her home improvements and other eco repairs, the newspaper noted.
Some Britons may decide to make their property as green as possible in order to save money on home heating bills further down the line, especially as the cost of fuel has increased.
However, as the newspaper noted, it can cost a large amount of money, a sum which many households may not have to hand during the current recession.
Rather than get into debt to fund extensive home improvements, some individuals may be addressing ways in which to raise the cash.
People who have already considered selling their endowment policies may not realise that selling their policy is another avenue they could go down.
CEO of aap Chris Radford stated that should the firm decide to make an offer to buy an endowment, it will always pay more than the surrender value offered by the insurance company.
Source
Tuesday, September 15, 2009
Is selling my endowment for home improvements a good idea?
House prices experienced an annual drop of 14 per cent in June, taking the average value of a home to £153,046, new figures have revealed.
The statistics from the Land Registry showed that all regions in England and Wales saw a decline in the average value of a property over the past 12 months. The region with the most significant fall was the north-east, where property prices plummeted by 15.9 per cent.
However, Luton experienced the biggest annual price fall of 23 per cent. In contrast, houses in London saw a two per cent value increase, bringing the average property price up to £301,859, the survey found.
Completed house sales fell by 42 per cent between this April and the same month last year. As such, homeowners who intend to put their property on the market may want to carry out some DIY or invest in large improvement ventures to boost the value.
Chris Radford, chief executive officer of aap - the UK's biggest buyer of endowment policies - said some of its customers had sold their endowments to cover the cost of big lifestyle changes, such as adding an extension or doing up a property.
Obtaining cash through endowment selling could be required. Adding a conservatory to a property can cost Britons around £20,000. However, homeowners have been advised not to try and carry out this project on the cheap.
Jason Orme, editor of Homebuilding & Renovating Magazine, said money should be put towards properly planning a conservatory, making sure it is well designed and that is tailored to fit in with a home.
"It is often the case that a cheap bolt-on added on to a lovely country house would not add any value at all and probably would take it away. But a really well-designed individual conservatory added on to any kind of house will add value," he stated.
The average cost of an extension is £19,922, although over £25,000 could be added to the value of a property, Halifax's latest Home Improvement Survey revealed.
Money for an extension could come from selling, rather than surrendering, an endowment. Mr Radford said that if aap decides to make an offer to buy an underperforming endowment, it will always pay more than the surrender value provided by the insurance company.
Ensuring a conservatory and the rest of a property is as energy efficient as possible could not only lower energy bills, but make a home more attractive.
The Halifax Home Improvement Survey discovered that fuel-saving and energy efficiency measures are the most popular home improvements and individuals think they can get the best value out of them.
While installing solar panels, replacing an old boiler with a greener condensing one, lagging pipes and insulating walls may all cost money, Mr Radford said some of aap's customers had sold their underachieving endowment policies to cover such needs.
Indeed, over the past 12 months, the average amount that Britons have spent on property improvements is £5,344, the Halifax study showed. The typical value individuals think DIY adds to their home is £6,466, representing an average return on investment of 120 per cent.
To make a home more appealing to potential buyers, people may have looked at adding an extension, fitting a new kitchen or making a home more environmentally friendly.
Homeowners who have already considered surrendering an unwanted endowment policy to raise money may not have realised that selling is another option available to them.
And if an endowment is sold through a secondary market maker such as aap, people could find they receive more cash then they would have got from the surrender value, if the company makes an offer to buy their policy.
The statistics from the Land Registry showed that all regions in England and Wales saw a decline in the average value of a property over the past 12 months. The region with the most significant fall was the north-east, where property prices plummeted by 15.9 per cent.
However, Luton experienced the biggest annual price fall of 23 per cent. In contrast, houses in London saw a two per cent value increase, bringing the average property price up to £301,859, the survey found.
Completed house sales fell by 42 per cent between this April and the same month last year. As such, homeowners who intend to put their property on the market may want to carry out some DIY or invest in large improvement ventures to boost the value.
Chris Radford, chief executive officer of aap - the UK's biggest buyer of endowment policies - said some of its customers had sold their endowments to cover the cost of big lifestyle changes, such as adding an extension or doing up a property.
Obtaining cash through endowment selling could be required. Adding a conservatory to a property can cost Britons around £20,000. However, homeowners have been advised not to try and carry out this project on the cheap.
Jason Orme, editor of Homebuilding & Renovating Magazine, said money should be put towards properly planning a conservatory, making sure it is well designed and that is tailored to fit in with a home.
"It is often the case that a cheap bolt-on added on to a lovely country house would not add any value at all and probably would take it away. But a really well-designed individual conservatory added on to any kind of house will add value," he stated.
The average cost of an extension is £19,922, although over £25,000 could be added to the value of a property, Halifax's latest Home Improvement Survey revealed.
Money for an extension could come from selling, rather than surrendering, an endowment. Mr Radford said that if aap decides to make an offer to buy an underperforming endowment, it will always pay more than the surrender value provided by the insurance company.
Ensuring a conservatory and the rest of a property is as energy efficient as possible could not only lower energy bills, but make a home more attractive.
The Halifax Home Improvement Survey discovered that fuel-saving and energy efficiency measures are the most popular home improvements and individuals think they can get the best value out of them.
While installing solar panels, replacing an old boiler with a greener condensing one, lagging pipes and insulating walls may all cost money, Mr Radford said some of aap's customers had sold their underachieving endowment policies to cover such needs.
Indeed, over the past 12 months, the average amount that Britons have spent on property improvements is £5,344, the Halifax study showed. The typical value individuals think DIY adds to their home is £6,466, representing an average return on investment of 120 per cent.
To make a home more appealing to potential buyers, people may have looked at adding an extension, fitting a new kitchen or making a home more environmentally friendly.
Homeowners who have already considered surrendering an unwanted endowment policy to raise money may not have realised that selling is another option available to them.
And if an endowment is sold through a secondary market maker such as aap, people could find they receive more cash then they would have got from the surrender value, if the company makes an offer to buy their policy.
Friday, August 28, 2009
Selling your endowment to manage debt
Over half of British homeowners admit they are struggling with financial difficulties, new research has showed.
Despite such findings, 37 per cent of people say they will not commit to lifestyle changes which could lift them out of the red and into the black, the survey by Moneyextra.com revealed.
However, Chris Radford, chief executive officer (CEO) of aap - the UK's biggest buyer of endowment policies - said some of its customers had sold an unwanted endowment policy in order to make headway into clearing debt.
The study by Moneyextra.com also found that while downsizing a home could help people stay on top of their finances, many individuals are reluctant to take this measure.
Almost two-thirds of respondents feel that they are judged on the size and value of their home, while 66 per cent of people even admit they care what their neighbours think.
Furthermore, while 40 per cent of individuals living in the north-most parts of England think downsizing to pay off debt is a sign of failure, this increases to 55 per cent for residents in London, the poll discovered.
Commenting on the findings, Richard Mason, of Moneyextra.com, said: "It's absurd that struggling homeowners aren't prepared to downsize simply to save face - these people need a wake up call!
"Surely it's better to downsize on your own terms than face repossession and risk losing everything."
Indeed, the Council of Mortgage Lenders has advised homeowners to talk to their lenders as soon as possible if they are concerned that debt could impact on their ability to meet mortgage repayments.
Although downsizing is an option some people will take, many Britons may decide to look at other avenues to go down, in order to meet their debt management commitments.
Rather than selling a home to raise cash to pay off debt, many homeowners could prefer to take a different option.
Britons who have already considered surrendering their unwanted endowment policies in order to meet debt management needs may not realise that selling their endowment is another route.
Chris Radford, CEO of aap, said many of its customers had sold their underperforming endowments in order to clear debt, without needing to dip into savings or other investments.
He added that should aap decide to make an offer to buy an endowment, it will always pay more than the surrender value offered by the insurance company.
Despite such findings, 37 per cent of people say they will not commit to lifestyle changes which could lift them out of the red and into the black, the survey by Moneyextra.com revealed.
However, Chris Radford, chief executive officer (CEO) of aap - the UK's biggest buyer of endowment policies - said some of its customers had sold an unwanted endowment policy in order to make headway into clearing debt.
The study by Moneyextra.com also found that while downsizing a home could help people stay on top of their finances, many individuals are reluctant to take this measure.
Almost two-thirds of respondents feel that they are judged on the size and value of their home, while 66 per cent of people even admit they care what their neighbours think.
Furthermore, while 40 per cent of individuals living in the north-most parts of England think downsizing to pay off debt is a sign of failure, this increases to 55 per cent for residents in London, the poll discovered.
Commenting on the findings, Richard Mason, of Moneyextra.com, said: "It's absurd that struggling homeowners aren't prepared to downsize simply to save face - these people need a wake up call!
"Surely it's better to downsize on your own terms than face repossession and risk losing everything."
Indeed, the Council of Mortgage Lenders has advised homeowners to talk to their lenders as soon as possible if they are concerned that debt could impact on their ability to meet mortgage repayments.
Although downsizing is an option some people will take, many Britons may decide to look at other avenues to go down, in order to meet their debt management commitments.
Rather than selling a home to raise cash to pay off debt, many homeowners could prefer to take a different option.
Britons who have already considered surrendering their unwanted endowment policies in order to meet debt management needs may not realise that selling their endowment is another route.
Chris Radford, CEO of aap, said many of its customers had sold their underperforming endowments in order to clear debt, without needing to dip into savings or other investments.
He added that should aap decide to make an offer to buy an endowment, it will always pay more than the surrender value offered by the insurance company.
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