8 April 2005
Personal loan debt can be wiped out by consolidation and re-mortgaging, leading economists have said today.
The advice comes in the wake of stories revealing the growing problem of Britain's debt mountain.
Financial adviser Charcol has noted that consolidating personal loan debt into a mortgage could see the borrower pay more in the long term, but would wipe out a large number of payments in the short term.
This would allow customers to manage their cash more effectively and avoid the build-up from interest rates.
Elliot Nathan from Charcol commented: "It is clear that there are many options open to those who have got themselves into the debt trap.
"The message is simple - go and get some advice from an independent professional, as there are things that can be done.
"Ignoring debt and letting it increase is the worst thing you can do as it really is a vicious circle. You pay the interest with all your income and then increase the debt each month to pay for living. Breaking the cycle is paramount."
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