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Comparing cheap mortgage deals help overcome debt

4/02/2008

Thinktank has warned that interest rates are still rising, this causing many to slip into large debts. Comparing cheap mortgage deals could be a soloution to overcome this problem.

As homeowners struggle to keep up with rising tax, energy and other bills, the average personal work income is not rising alongside this.

Figures showed that the total debt, including mortgages, per household increased by a major 63 per cent from £24,019 during 2002 to £55,554 in 2007.

Household debt has risen from 66 per cent from 1998 to 108 per cent 2008.
Charlie Elphicke, report author suggested that the increase had been so sudden it had left most households in major debt.

Mortgages were far more affordable five years ago, however a major change in 2007 saw the effectiveness to all mortgage holders.

Mr Elphicke added: "The combination of stagnating earnings, sharp increases in tax, excessive debt, rising effective interest rates and growing household running costs means that British households are more vulnerable, and less prepared for, any economic downturn."


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