Debt consolidation demand could soar as 400,000 fall into arrears
Debt consolidation demand could soar as 400,000 fall into arrears
- Thursday, 6 August 2009As many as 400,000 Britons are likely to fall behind on their mortgage commitments over the coming months, it has been predicted.
Following on from Northern Rock's announcement that a growing number of its customers have fallen behind on their repayments, Capital Economics has warned that many more are likely to get into difficulties in the near future.
For while interest rates remain at an historical low, rising unemployment and widespread wage freezes mean that, just as Britons are increasingly turning to debt consolidation solutions, so too are they likely to require
debt advice in order to avoid having their homes repossessed.
Speaking to the Daily Mail, Ed Stansfield from Capital Economics explained that this trend is likely to be driven through the traditionally "very strong relationship between arrears on mortgages and joblessness".
Earlier this week, the Halifax suggested that borrowers who opted to take out fixed-rate mortgages are now more likely to be on the lookout for debt consolidation solutions as they fail to benefit from recent interest rate cuts.

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