18th July '08 - September Predicted to be Big on Consolidation Loans
It is anticipated that September is going to be a busy time for British debt management companies, with around 1.4 million mortgage holders due to come off their fixed rate deals. Inevitably, many of these people will find themselves weighing up the virtues of such debt management solutions as IVAs and consolidation loans.
The chief executive of one Scottish debt company offering trust deeds, IVAs, and consolidation loans, commented, “People assume it is going to break from September onwards. You just know it is coming. You can see it, smell it. We are an anti-cyclical sector, and you couldn't find a better sector to be in at the moment.”
Adding, “People who in the past have used their house to make good unsecured borrowing – that is becoming much more difficult now, almost impossible.”
For those who find themselves most hard-hit by the credit crunch, incurring larger debts, it is likely that an IVA will represent a more viable debt management solution than a consolidation loan.
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