Debt management and the credit crunch

28 November 2008

Is debt management a realistic option in a today’s economic climate? For people in debt, a credit crunch can be a worrying time – lenders are worried about lending out more money, which can make certain debt solutions difficult to come by, and often more expensive.

In such an environment, the benefits of debt management can be even more significant than usual. Unlike debt consolidation loans, it doesn’t actually depend on borrowing more money – debt management is about rearranging the way in which you’ll repay the money you already owe. Debt consolidation mortgages (like loans) also depend on extra credit, but they often depend on the state of the housing market too, which can make them particularly hard to find when prices are dropping.

This isn’t to say that debt consolidation loans / mortgages are unavailable – there are plenty of lenders who can still help people consolidate their debts – but it may lead people to consider a debt management plan who may have chosen a different debt solution if they’d run into debt problems a couple of years ago.

In the end, it depends on the individual. Some people would still prefer (if possible) to consolidate their debts than go on a debt management plan. Others may prefer debt management. Others may find a different debt solution – an IVA (Individual Voluntary Arrangement) or Trust Deed, for example – is more appropriate.

Debt management – more information
If you’d like some free debt advice or information about any of these debt solutions, call one of our expert debt advisers on freephone 0800 161 3516. Gregory Pennington are a debt management company, but we also offer a wide range of other debt solutions, and we can help you decide which one (if any) could be the best way for you to address your debts.

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Gregory Pennington is a member of DEMSA whose code of conduct is approved by the Office of Fair Trading.