Monday 18th of May 2009
Acting early is important in order to minimise the effects of debt problems, it has been stated.
According to moneysupermarket.com, working with lenders if difficulties are being faced is important to ensure they do not get out of control.
Head of mortgages at the price comparison site Louise Cuming explained that low interest rates and lenders’ commitments to work with borrowers is helping keep repossessions low.
But she added: "Many people in dire financial straits may still hope that if they ignore the problem it will go away, but it won’t. Seeking help early on is always the best policy."
Those who are struggling to repay mortgages may be able to enter into an individual voluntary arrangement, which could make other debts more manageable and allow focus to be placed on paying off secured loans.
The Finance and Leasing Association recently revealed that repossessions have remained fairly flat compared to 2008 levels, as lenders attempt to avoid them.
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Interest rates to rise before the end of the year
