Don’t hide your debt problems, says expert

Consumers with debt management problems have been urged not to hide these difficulties from their money lenders.

In the long run, it is always better to be upfront with creditors about the state of your finance, particularly mortgage lenders, according to David Kuo from Fool.co.uk.

Mr Kuo maintains that in many cases borrowers are inclined to add to their arrears in a vain effort to become debt free when their initial lender may have been able to help ease the problems.

“One of the dangers that people have is they think they can solve the problems themselves,” he said.

“They think they can hide the problems and use their credit cards that little bit more when in actual fact they haven’t addressed the initial problem at all.”

According to the latest figures from the TDX Group, there were close to 400,000 people in the UK who turned to some sort of debt management solution over the course of last year.