Wednesday 1st of July 2009
Debt management may become a priority for Britons after new figures revealed that fewer homeowners have been given a remortgage loan.
The Bank of England reported that the number of approvals for remortgage loans has declined, which could force some homeowners to carefully manage their finances instead through a debt management plan.
In February there were 31,933 approvals for remortgaging, although this had dropped to 31,701 by April.
Lenders further cut the number of remortgage loans they approved in May, saying yes to 30,984 households.
The previous sixth month average stood at 34,346, the study revealed, although people who need to get their hands on extra cash could find a debt management plan to be of assistance.
Debt management plans can extend the repayment period of unsecured loans and credit cards, which may mean a smaller portion of income is paid out on debt each month. This in turn could help Britons to meet all their financial commitments.
A debt management plan could be more reliable than the government’s Mortgage Rescue Scheme, which has granted support to six households, the Communities and Local Government department stated.
- Debt consolidation loans falling, figures show
- Britons 'changing attitudes' towards debt management
- Homeowners 'more concerned with debt management'
- Low interest rate 'contributing to debt management efforts'
- Debt management growing in importance, survey finds
- Debt management plans could see off tax rise troubles
