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Consumers in debt should not delay seeking advice

Consumers in debt should not delay seeking advice

Category: Loans

Updated: 10/02/2009
First Published: 10/02/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Consumers facing debt problems as a result of outstanding secured and unsecured loans have been advised not to wait before seeking help.

According to Derek Oakley, insolvency practitioner at Debt Free Direct, people need to be "honest with themselves" in considering whether their finances are out of control.

He suggested that some may require a formal arrangement such as an individual voluntary agreement, while others may simply need a plan to budget correctly.

"People with problem debt delay taking action hoping for a windfall solution that simply doesn't arrive and this compounds the problem," Mr Oakley remarked, explaining that interest rises in addition to "piles of letters from creditors".

His comments follow figures from the Financial Services Authority, which revealed that secured loan holders are facing increasing pressure.

The body found that 13,161 homes were repossessed in the third quarter of last year, nearly double the level seen in 2007.

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