Effective debt management is important for homeowners going through difficult economic times, one financial organisation has said.
First Direct, a division of HSBC, has offered advice on becoming debt free which could enable consumers to make the most of the current climate.
Spokesperson for the firm Jimmy Kelly stated: “There are many ways for canny money managers to benefit from the tough economic climate, all indications point to the fact that Brits are beginning to pay back their debts.”
The banking organisation advised mortgage holders to take advantage of the present interest levels and remain paying off their existing monthly fees at the same rate to bring the overall debt down.
People were also urged to switch to offset mortgages, which may see a typical homeowner reduce the length of a £100,000 mortgage by three years. This could amount to over £18,000 in saved interest payments.
Recent figures from the Council of Mortage Lenders showed that many people were switching back to fixed-rate mortgages, with 69 per cent of borrowers choosing this option in April 2009.
By Francis Finch