Think Money

Think Money

April 13, 2010 07:33 ET

Debt management: one option for unaffordable debts

LONDON, UNITED KINGDOM--(Marketwire - April 13, 2010) - Financial solutions company Think Money has welcomed news that homeowners cut their secured debts by more than £4bn in the last quarter of 2009, but said that there will still be many people who simply can't afford to do this.

Recent Bank of England figures show that millions of borrowers are holding back on spending to pay down debts, as the risk of unemployment and economic uncertainty continues.

Homeowners reduced the level of debt secured against their homes by £22.3bn in the whole of 2009, and by £36bn over the last 21 months.

A debt expert at Think Money said:

"It's very encouraging to see so many borrowers focusing on repaying their debts. The economy is still in a relatively difficult position, and most people in debt are at risk of greater problems - for example if they're made unemployed. The statistics suggest that people recognise this and are acting on it.

"But it's unfortunate that there are still many people who simply can't afford to pay any more than the minimum towards their debts - or worse still, can't afford to repay their debts at all.

"For these people, finding the right debt solution is particularly important. There are debt solutions that can help with all levels of debt, and the sooner they seek help, the better.

"One option for people with unaffordable debt repayments might be a debt management plan, provided the borrower can still afford to repay the debt over time.

"Even if the borrower doesn't think they'll ever be able to repay their debts in full, a debt solution aimed at writing off unaffordable debt, such as an IVA [Individual Voluntary Arrangement] or bankruptcy could help."

Notes to Editors

One of the UK's leading financial solutions providers, Think Money is based in Salford Quays, Manchester, and employs around 800 employees to deliver a comprehensive range of debt solutions, including debt management plans and IVAs, as well as various other financial products.

Think Money defines its mission as 'To educate, rehabilitate and advise on all aspects of financial management'.

Think Money debt management page: http://www.thinkmoney.com/debt/debt-management/

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