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ADDIDI Wealth: Re-financing increasingly difficult for debt-ridden consumers
The ongoing credit crunch has made it difficult for people to borrow at affordable rates and one in two Brits has now adopted "something of a debt lifestyle", according to the director of ADDIDI Wealth.
Anna Sofat said that high interest rates are one of the reasons for the current situation: "Rates might only have crept up a couple of per cent on two years ago but that's quite a lot and where there's been a real increase has actually been on mortgages, personal loans and secured loans."
It would be particularly hard for those who tried to borrow at this moment in order to re-finance their existing debt, added Ms Sofat.
She made a comparison with the recent past when banks were giving people money "at silly rates" and "you could have had a personal loan for the same rate if not cheaper than a mortgage".
But Ms Sofat believes those days are now going and that is because of the credit crunch and not the interest rates.
A recent survey by Citizens Advice revealed that record numbers of people worried by debt are seeking help and many find it difficult to pay their household bills.