Debt consolidation in 2008
The Council of Mortgage Lenders (CML) has said that people may want to consider taking out a debt consolidation loan rather than continuing to struggle with debt that has become too high to manage. They warn that house repossessions and mortgage arrears will continue in 2008.
The CML have predicted that the current trend for three month mortgage arrears will increase from 145,000 at the end of 2007 to 170,000 by December 2008. This suggests that more and more people could benefit from debt consolidation to ease the financial burden.
They have also estimated that house repossessions will rise by a further 15,000 by the end of December 2008 which is a 50% increase from 30,000 in 2007. Figures are set to rise to a whopping 45,000 next year. People should take heed of these predictions and seek debt help now.
The majority of borrowers will cope in 2008 but some will struggle with their mortgage repayments. A debt management plan could be the perfect answer to their debt problems.
The CML also predict that there will be a drop in mortgage lending, a rise in house prices and tougher restrictions on lending.
They see good news on the horizon with the Bank of England’s base rate dropping by 5% at the end of 2008.
Since the turn of the century, people have been borrowing beyond their means. As a result, many are struggling with repayments and the number of people who need debt help has increased at an alarming rate.
