Debt consolidation and the 'debt famine'

Although more people will be desperate for debt consolidation solutions in 2008, experts predict a ‘debt famine’.

Debt is continually in the headlines as it impacts more heavily on people’s lives. The impact of debt can be devastating, causing anxiety, depression, reducing the quality of life, impacting on health and even leaving some at risk of homelessness as they face the very real risk of repossession. Debt consolidation is one way to manage uncontrollable debts. Taking out a debt consolidation loan allows you to pay off your debts and organise one monthly payment that makes money management easier to control.

Debt consolidation – harder to secure

But the problem for many people struggling with debt in 2008 is the fact lenders are cracking down on their lending criteria. The run on the Northern Rock bank and increasing economic instability means banks and building society are stricter about granting debt consolidation loans to high risk customers (those with a bad credit history). The Bank of England reported that mainstream banks have undergone a ‘sharp drop’ in their willingness to lend cash.

Dramatic clampdown on debt consolidation loans

The turmoil in the world economy means borrowers are feeling the brunt. Securing loans, including debt consolidation loans, is harder than ever, but it’s still possible to get help by using financial brokers who can scour the market on your behalf. But the increased difficulty in securing debt consolidation loans has prompted financial experts to predict a sharp rise in personal and corporate insolvencies in 2008.

Act now for debt consolidation

Lenders are expecting the situation to get even tighter, so if you’re in need of a debt consolidation loan, now is the time to act. For some, it could be the difference between falling into insolvency, bankruptcy or home repossession. Reports say that banks are in the process of making their credit scoring schemes far stricter – these decide who they’ll loan money to and who they won’t. The Chief UK economist at Citigroup, Michael Saunders, told the press: “This certainly is a case of going from feast to famine…That doesn't mean that there won't be any lending at all - just that the conditions surrounding it will be far tougher.”

Get debt consolidation help with Homebank
If you are thinking about debt consolidation, let the experts save you time and money by finding the right debt consolidation loan for you.

Homebank have qualified mortgage consultants ready to advise you with all your debt consolidation, mortgage and insurance needs. For informative, insightful advice on debt consolidation, call us to arrange a no-obligation appointment to suit you.

Homebank are the “people’s mortgage broker”, with thousands of products to choose from, including some that are not readily available on the High Street. Homebank’s experienced consultants could find the ideal debt consolidation product for you. Call Homebank free now on 0800 052 3604