Wednesday 25th of November 2009
Debt management plans could be required by those individuals who have been repeatedly hit with high interest repayments and banks hiking up their charges.
According to the Citizen’s Advice Bureau (CAB), the banking practices seen before the recession pushed many households into debt, with some individuals being allowed to borrow money that they could not afford to repay.
The CAB in Scotland says that almost 1,000 people a day ask for advice on how to repay their financial commitments, with one solution available for residents being a debt management plan.
Under a debt management plan, interest rates are reduced, which could give cash-concerned consumers a break from climbing interest repayments currently hampering their ability to pay back what they owe.
Many people who come to CAB are not managing to keep afloat when it comes to debt, while "others are facing the misery of redundancy, home repossession or falling incomes – as a direct result of banking policies which have failed to take proper account of the economic realities under which many people live", claims Susan McPhee from CAB Scotland.
A debt management plan can also extend repayment periods, enabling Britons to have more time to gather the cash to repay unsecured debt given to them by banks before the economic downturn arrived.
By Mark Waterman
