52% more homeowners getting debt help since 2008

The number of homeowners receiving help with debt problems has increased by 52 per cent since 2008, figures from Debt Advisory Centre suggest.

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The number of homeowners receiving help with debt problems has increased by 52 per cent since 2008, figures from Debt Advisory Centre suggest.

Homeowners accounted for 25 per cent of the organisation's clients back in 2008, but today that figure has increased to 38 per cent.

When the economic crisis hit in 2008, many experts warned homeowners had taken on mortgages they could not afford in the long term and it appears these new figures confirm just that.

On top of this, it is thought several more individuals can only afford their mortgage payments at the moment because of low interest rates and may begin to struggle when the Bank of England eventually increases its base rate from the current record-low.

When this does happen there could be thousands of families struggling to pay off their mortgage as well as any personal debt they may have. For these people it is imperative for them to get help as soon as possible so that when the financial environment changes they are fully prepared.

Melanie Taylor of Debt Advisory Centre said: "Debt problems are always worrying, but they can be all the more serious for homeowners who fear they may lose their home. However, there is nearly always a way to avoid things getting to that point if you act early."

She went on to say receiving help early means interest and charges have less time to build up, "so it really is worth seeking advice as soon as you realise you have a problem".

While the figures may look high, it is pleasing to see individuals are getting help with their debt before it becomes too much.

People struggling to make ends meet because of large repayments could consider a debt consolidation loan, which could potentially reduce the amount paid out each month. In this case the time it takes to pay off the debt would be increased, but it could leave you with more room to breathe.

By James Francis

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