Monday 1st September, 2008 Debt Consolidation News

The consequence of the current economic climate has caused the number of approved mortgages to significantly reduce. It appears that no longer are consumers looking to deal with their debts using debt consolidation.

This aversion to taking out further loans is due in no small part to consumers showing a determination to deal with their debts. July's figures indicate that the value of approved mortgages for house purchases sunk to a 10 year low falling to £3.2 billion, 69% below July 2007's figure of £10.3 billion.

The total gross mortgage lending, which includes re-mortgages and debt consolidation lending, fell to £14.6 billion, 25% less than July 2007's gross mortgage lending figures.

The British Banking Association's own figures revealed that 22,448 new loans to buy houses were approved in July 2008. This represents a dramatic fall of 65% from the previous year when 64,184 mortgages were approved for the corresponding month.

These figures not only reflect consumers willingness to deal with their debt problems but also a reluctance for prospective house buyers to enter the market until the credit crunch has settled down and house prices stabilise.

Debtwatchdog urges those who are worried about their debts to deal with them in a positive and decisive manner.