Monday 26th November, 2007 

It has been predicted that those people who are struggling with a debt problem will find it harder to obtain a mortgage next year.

The Council of Mortgage Lenders anticipates that lenders will revise their lending criteria for the oncoming year and become more selective about who they lend money to. This is bad news for those who are already struggling with their mortgage repayments and those with adverse credit as the banks become more selective on who they will lend to.

For those who have used debt consolidation as a debt management strategy they will have to re-examine their spending patterns.

Debtwatchdog is concerned about those who have been running up large debts and then paying them off with a either a secured loan or a re-mortgage. This form of debt consolidation does not address the fundamental issues behind the over spending: debt consolidation only masks the problems. The anticipated problems will make it even more difficult for those who are struggling with debts to cope with their debt problems.

The key to successful debt management is to ensure that you are in control your spending. This can be achieved through monitoring your expenditure through our, free to use tool, Statement of Affairs. If you need help you can use our SOA tool and submit it be be reviewed by our debt forum members.