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Debt cannot be 'managed as cheaply as before'
17/04/2008 09:42:00
The effects of the credit crunch mean that consumers cannot manage their debt as effectively as they could before, one financial expert has claimed.
National Debtline said that the credit crunch has reduced the number of zero per cent transfer deals after a period where consumers have had easy access to cheap credit.
Beccy Boden-Wilks, a debt adviser and spokesperson for National Debtline, said that people are now getting to the end of their nine month balance transfer deal, looking around for another one and being refused, or just finding that those deals are not available.
"If people can't afford their non-priority debts anymore sometimes they'll stop paying their mortgage as well. It's definitely having a knock-on effect," she said.
She added that in the current climate nought per cent balance transfers are going to be very hard to come by, if not non-existent.
Sainsbury's Finance estimates that some 716,600 people will try and transfer around £1.1 billion a month between credit cards this year.
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