Debt Advice Help and Support

Repayments better debt help than saving (31 Jan 2012)

Paying off a debt or a homeowner's mortgage is "more cost effective" than saving money, and could serve as a positive form of debt help.

 

Debt help can come in many forms, depending on how indebted you are – and it's worth remembering that bankruptcy isn't the only option.

 

Once you've consulted an advisor, you could go for an IVA, if you owe £12,000 or more - or a debt management plan should your borrowing have crept above £3,000.

 

Editor-in-chief at Your Mortgage, Paula John thinks more homeowners should look to take advantage of the currently low interest rates.

 

She says: "It doesn't actually make sense and doesn't add up for you to be putting money away into a savings account - and not using it to pay down debt instead."

 

The comments come as figures from first direct show that 41 per cent of mortgage holders in the UK save money on a regular basis, while only 21 per cent frequently overpay their mortgage.