The credit crunch will reduce the availability of cheap borrowing, according to a national helpline.
Beccy Boden-Wilks, spokesperson for the National Debtline, said that many people will find that moving debt between different lenders and forms of borrowing may become less of an option.
“People who have been using that and relying on that as a way of juggling things – transferring [debt] onto cheaper credit – is an option that’s closing for many people now,” Ms Boden-Wilks said.
Despite this, the spokesperson said that anyone looking to clear debt should consider refinancing to make the payment of their monthly bills a little easier.
She also suggested that someone with a good credit history could manage their debt more cheaply this way, increasing the likelihood of them becoming debt free.
National Debtline is part of the Money Advice Trust charity and helps people in England, Scotland and Wales who are experiencing debt problems.