'Seek help' for financial problems

Wed 23 Apr 2008 - Published in Loans

People that are facing financial difficulties should not hide their problems or believe that they can solve them on their own, an expert has argued.

A recent study from TDX Group has shown that some 400,000 people opted for debt payment solutions during 2007, with some 58 per cent of this group opting for a refinancing package or new mortgage to cover existing debt.

But tackling problems alone may not be the best option, said David Kuo, head of personal finance at the Motley Fool.

"One of the dangers that people have is they think they can solve the problems themselves. They think they can hide the problems and use their credit cards that little bit more," he said, adding that often in this situation people have not addressed the problem at all.

Instead borrowers should talk to their lenders to see if a solution to debt worries can be agreed upon, he said.

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