Lenders are more open to debt consolidation plans than “ever before”, it has been claimed.
Ian Boden-Smyth, a money advice co-ordinator at the UK Insolvency Helpline, stated that banks and building societies are now more willing to negotiate with borrowers rather than resorting to “aggressive or threatening tactics” to make people pay up.
“In light of the current economy they are now more interested in getting cash in,” he remarked.
Mr Boden-Smyth noted that over the past few years, banks had become “annoyed” with the level of Individual Voluntary Arrangements that were being set up, but that this had now changed and they want to help people clear their debts.
Meanwhile, a poll conducted by Sainsbury’s Finance has found that 56 per cent of people expect to clear their Christmas debt within one month.
But 177,000 of those questioned said it could take over a year to do so.
By Jamie Price