Don't narrow your options with debt management

Homeowners who are struggling to budget are urged to explore several solutions to make an informed decision about the best option available for them.

Personal debt in the UK amounts to £1.39 trillion with interest payments costing citizens some £93 billion annually

Almost ten million people have a credit card balance that reached its upper-most limit during the past six months.

Uswitch.com, the price comparison website, calculates that better management of all the unsecured loans contained on credit cards, store cards and overdrafts consolidated into the lowest interest loan could save £15 billion alone.

Iain Wrenshall, director of Debt Help UK, advises: "As your situation degrades, then your options generally become narrower and, ultimately, your creditors have the sanction to make that choice for you.

"So it is important that people don't bury their heads in the sand, but look for free advice which is going to help them understand the solutions and the options open to them."

Uswitch.com has calculated that the average household could save £605 in three years by consolidating to a best buy loan and making just one fixed payment every month. For those people who say that they cannot afford to take out home insurance, debt consolidation may offer them a solution.

16/01/2008 10:21:26