Increase in homeowners with debt problems

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Latest figures from Debt Advisory Centre suggest the number of homeowners getting help with problem debts has increased by 52% since 2008.

Homeowners accounted for 25% of Debt Advisory Centre’s clients back in 2008, but today that figure has increased to 38%.

It believes that many more homeowners can only afford their mortgage payments because of low interest rates – and could begin to struggle when the Bank of England eventually increases its base rate from the current record-low.

Melanie Taylor of Debt Advisory Centre said: “Debt problems are always worrying, but they can be all the more serious for homeowners who fear they may lose their home. However, there is nearly always a way to avoid things getting to that point if you act early.

“We offer a wide range of debt solutions for people in all kinds of circumstances, including Debt Management Plans, Individual Voluntary Arrangements (IVAs), Debt Relief Orders and exclusive Scottish solutions such as the Debt Arrangement Scheme and Trust Deeds.

“Getting help early also means interest and charges have had less time to build up, so it really is worth seeking advice as soon as you realise you have a problem.”

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