10 October 2008
Borrowers who are struggling to repay their secured loans should seek help and advice immediately, according to Citizens Advice. Figures released by the national charity reveal that increasing numbers of people are looking for guidance on how to manage their secured loan arrears. In the last 12 months, Citizens Advice Bureaux (CABs) in England and Wales have seen a 35% increase in the number of borrowers coming to them with secured loan debt problems. Redundancy and business failure were responsible for people falling into arrears in 20% of cases, while ill health and relationship breakdown also contributed. David Harker, Chief Executive of Citizens Advice, said borrowers who find themselves falling behind on their repayments should speak to their lender to negotiate an alternative repayment plan. For those already in debt, he advised: "Get help from a CAB, or other free independent advice agency who can help you work out payment options, check you are receiving all the benefits you are entitled to and help you claim any money that could offset your costs. Earlier this week, the Bank of England cut interest rates by 0.5%, which could provide some relief for borrowers if lenders pass on the reduction to their customers.
© 2008 Adfero Ltd
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