Think Money

Think Money

September 03, 2010 12:24 ET

A debt problem shared is a problem halved

LONDON, UNITED KINGDOM--(Marketwire - Sept. 3, 2010) - Financial solutions company Think Money (http://www.thinkmoney.com/) has advised struggling borrowers to make sure they inform all relevant lenders at the first sign of problems with debt, after research by Callcredit found that almost 70% of people who find themselves struggling never contact their bank or building society about the problem.

The credit reference agency found that 69% of people suffering 'financial pressures' in the last two years have never discussed the problem with their bank or building society.

A further 38% admit they did nothing to adjust to their new circumstances when they first experienced problems with their finances - potentially allowing the problem to get worse.

And the 31% of people who do speak with their bank or building society take an average of two months to do so.

A debt management expert at Think Money commented:

"It's essential that people understand the importance of discussing debt problems with their lenders, because they may be able to offer valuable help and support. They may also be more lenient when it comes to things like late payment charges if they have been kept informed.

"The phrase 'a problem shared is a problem halved' applies here. Obviously the debts themselves can't just be halved, but the stress of dealing with them usually can. The sooner something is done, the sooner a solution can be found.

"Lenders may be able to offer their own assistance by making repayments more affordable, or if that's not possible a debt adviser could help the borrower to find a more specific debt solution that meets their needs, such as a debt management plan."

Notes to Editors

Think Money is one of the UK's leading financial solutions providers, delivering a comprehensive range of debt, loan, insurance and banking solutions.

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

For more information, visit the Think Money website at http://www.thinkmoney.com/.

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

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