Friday 3rd of April 2009
Difficulties in refinancing have contributed to changing attitudes when it comes to debt, an expert has suggested.
Vicky Redwood, UK economist at Capital Economics, noted that low rates have also prompted people to consider repaying what they owe sooner.
Borrowers who find they are unable to cope with their debts may wish to seek IVA advice, as solutions are available to help freeze interest and set out repayment plans.
Recent Bank of England statistics indicated that the amount paid back to lenders was £245 million higher than what was borrowed in February.
And according to Ms Redwood, declining savings rates have prompted people to concentrate on debt management.
But she added: "How long that change in attitudes will last I don’t know," stating that it would be "unrealistic" to expect it to be a permanent shift, a prediction that could mean further debt help is required in the future.
