Citizens Advice (CA) has warned that today’s interest rate rise will put “added pressure” on homeowners.
According to the organisation, a small change in circumstances is enough to cause people problems when it comes to managing their debts and can “tip them from manageable credit commitments into serious debt”.
Statistics collected by the body show that an increasing number of people are contacting the CA after falling behind with mortgagepayments.
.”Lenders need to be sympathetic towards people who are struggling with payments and anybody in arrears should talk to their lender and get independent advice as soon as possible”, said a spokesman.
However, according to finance charity the Debt Advice Bureau, the problem can often lie with the borrowers themselves.
A spokesman said that many people do not plan for a change in circumstances and are then faced with difficulties when their situation changes.
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