Lenders 'more willing' to help people in debt

Lenders are becoming more willing to work together with consumers to help them consolidate or reduce their debts, a money advice co-ordinator has asserted.

According to Ian Boden-Smyth of the UK Insolvency Helpline, banks and lenders are becoming "more open to debt management and consolidation than ever before".

He explained that the current economic crisis has encouraged lenders to adopt a "complete opposite" strategy then they have employed in the past.

"They are now more interested in getting cash in and entering into negotiations with debtors rather than using aggressive or threatening tactics to make collections - it's the complete opposite now," he said.

Research from uSwitch.com has indicated that borrowers could save a collective £20 billion by consolidating unsecured credit card, loan and overdraft debts into a lower-cost form of credit.

The research found that currently, borrowers are paying a combined annual total of £98 billion in interest.

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