30% of adults concerned about ability to manage debt

Almost a third of adult Britons are concerned about their ability to manage debt, MoneyExpert has stated.

As reported on Mortgage Introducer, 27% of people who were already in debt have accumulated more debt in the past three months. Around 1.8 million people are reported to have increased their debts by over 20% in that time.

“Given today’s economic climate,” said a debt expert for Think Money, “borrowers should clearly be focused on reducing the size of their debt – not increasing it. In cases where taking out new credit is unavoidable, people should be extremely careful to borrow only as much as they really need, and to repay it as fast as realistically possible.”

Regarding mortgage debts, many homeowners will soon start benefiting from the Bank of England’s decision to lower its base rate by a further 1% – numerous mortgage providers have already announced their intention to reduce the interest charged on their SVR (Standard Variable Rate) mortgages as of 1st January 2009.

“Any reduction in someone’s monthly mortgage payments can make a real difference to a their finances, giving them an opportunity to increase the amount they pay off their unsecured debts each month – without increasing the amount they’re spending.”

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Think Money offer a range of debt solutions, including debt management, debt consolidation loans and IVAs (Individual Voluntary Arrangements). If you are worried about your debt, contact one of our expert debt advisers today.

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