February 8, 2010

More Adverse Mortgage Borrowers Look To Debt Management

A high level of personal debt and the prospect of rising interest rates could drive more people into taking out risky, expensive debt management plans in 2010.

According to moneysupermarket.com, the free resources for debt management are becoming overwhelmed with more and more people asking for help with adverse debt. This is leading more people to pay for debt advice through a debt management firm.

Debt management isn't necessary a bad thing, but like all things where adverse mortgage debt is concerned, it might not be right for everyone. Moneysupermarket.com has warned that there are many potential pitfalls in the unregulated minefield of the debt management industry.

Tim Moss, head of loans and debt at moneysupermarket.com, says: “Being in debt and watching red letters fall through your letter box can be an extremely stressful experience, and many people find that hiring a debt management company to negotiate with their creditors for them can bring a real sense of relief.

“If you are going to use a debt management company you should only do so with your eyes wide open. Not being fully aware of all the charges involved could make a bad financial situation much much worse.”

There are lots of regulated alternatives you can turn to if you are having adverse mortgage and unsecured debt problems. One of them is your mortgage adviser – they can help you assess your finances and assess your options. It might be that a remortgage may solve some of your problems, or a secured consolidation of your debts may be the best bet – but you will only know if you ask them.

But if you cannot get finance, a good mortgage adviser can help you with your debt management, possibly by referring you to a good, honest debt management provider. You can be sure of them because a trusted mortgage adviser would only trust a good debt manager with his or her trusted clients.

SOURCE: Moneysupermarket.com, 04/02/10

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.