Options for debtors 'will decrease'

17 April 2008

Debt problems for many consumers look likely to continue for the remainder of 2008 because the options for those in trouble will dwindle, it has been suggested.

Management firm TDX Group stated that a turbulent economic environment, including the onset of the credit crunch, will cause pain for people looking to manage existing debt, in some cases created via personal loans.

A spokesman at the organisation noted that service providers are beginning to clamp down and restrict the number of deals available.

"There will be fewer refinancing solutions such as re-mortgaging and homeowner loans available, because banks and building societies have tightened up their lending criteria," he observed.

He also remarked that the numbers pushed towards individual voluntary arrangements could well rise in 2008.

Individuals getting into trouble ought to look around for the best deals open to them, the company added.

Mintel suggested this week that Brits are beginning to trim their outgoings as the affect of the credit crisis takes a firm grip.

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