Wednesday 28th of October 2009
The popularity of fixed-rate mortgages is decreasing, which could cause long-term debt problems for the rising number of people on tracker deals - something a debt management plan could tackle early.
Fixed-rate loans made up just one-third of the total number of mortgages granted in September.
This could mean more people are signing up to tracker mortgages to take advantage of the current all-time low base rate of just 0.5 per cent.
But with a mortgage spanning several decades, the interest rate will inevitably rise - which could leave Britons struggling to meet repayments in the near future.
One way to increase the chances of avoiding such a problem is by using a debt management plan now to help wipe out unsecured loans.
A debt management plan could deal with unsecured debts, such as credit card bills, by reducing interest rates and altering the repayment structure based on what a debtor can afford.
This may give cash-concerned Britons an easier route to clearing unsecured debt in preparation for any future base rate rises.
By Rachel Powell
