Friday 27th of March 2009
The number of loans taken out for debt consolidation purposes has been dropping, experts have suggested.
According to the Finance and Leasing Association (FLA), second charge mortgages are often used by consumers for debt management, as they can lower the rate of interest that is being paid.
But the body noted that new business in the area was down 84 per cent in January, compared to the same month in 2008.
Unsecured loans were also down 35 per cent and head of consumer finance at the FLA Fiona Hoyle explained that "the difficulties facing companies trying to secure funding in the commercial markets" was a major factor.
Those struggling to obtain finance to consolidate their debt may wish to consider non-borrowing options such as IVA help when addressing their situation.
Abbey Credit Cards recently found that Britons are making cutbacks in a number of areas as part of debt management efforts, with 69 per cent now spending less on food.
