Wednesday 19th of August 2009
"Greedy" bank are pushing borrowers further into debt by imposing hundreds of pounds worth of fees, a newspaper has claimed.
According to the Daily Mirror, one bank customer called Neil found himself facing a mortgage hike of almost £200 a month after his loan was taken over by Derbyshire Home Loans.
He then lost his job and ended up one month in arrears, a situation many Britons may currently find themselves in. Indeed, other financial commitments such as personal loans and store cards may be put on the backburner in order to avoid missing mortgage repayments.
In such circumstances, a debt management plan could help individuals budget. A financial expert will take into account monthly mortgage repayments and then outline how much cash should be used for unsecured debt.
Speaking to the newspaper, Neil said: "I tried to get them to agree to a three-month holiday so I could catch up - and I had the opportunity to train for a new job, paying twice my old salary."
Neil has experienced mortgage arrears of over £2,000 in the past five months. However, a debt management plan could allow people to keep up with their mortgage repayments, avoiding arrears charges.
By Mark Waterman
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- Britons 'changing attitudes' towards debt management
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