Homeowners set to turn to credit cards for help say National Homebuyers

Many households are set to turn to credit cards to help them make ends meet as their fixed-rate mortgage deals come to an end.

[UKPRwire, Fri Nov 30 2007] PricewaterhouseCoopers (PwC) says that personal debt is on the rise and many people could find themselves in financial difficulty when they switch mortgage rate.

The firm says that the average adult owes £33,000 compared to just £17,000 in 2000.

PwC is concerned that with many people set to come off their fixed-rate mortgages in the coming months, there may be an increase in people turning to credit cards to help them out.

"There are tough times ahead for both consumers and credit card companies," said Richard Thompson, partner at PwC.

"Banks are continuing to take action in response to the rise in consumer debt by tightening their credit acceptance policies.

"Many consumers will find it increasingly difficult to obtain credit in the run-up to Christmas," he added.

Fast cash for house property expert Julian King adds, "Homeowners particularly, must not get into the trap of relying on one form of credit to fund another.

"Hundreds of National Homebuyers customers facing financial difficulty wish they had taken our quick house sale or Sell and Rent Back solutions sooner, saving many months of worry and distress.

Mr King is a director of National Homebuyers, the UK's leading quick property purchase firm. The company guarantees to make an offer to purchase any property in the UK, regardless of its condition or location. The company is also the leading provider of equity release style Sell and Rent Back products.

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