Business life: My finance news blog

It comes as a result of high interest rates and the global credit crunch, which means that many people are set to see their rates rise when their fixed-rate deals come to an end.

Alison Burns from Lloyds TSB said that cutting back over Christmas may help to postpone financial difficulties but it is not the only answer.

“Cutting back on festive spending offers a short term solution but it’s a good idea for people with mortgages to take a longer term view of their financial situation to ensure their mortgage is suited to their specific needs and changing circumstances,” she added.

Homeowners can also avoid financial difficulties and even repossession by making a quick property sale or entering into a Sale and Rent Back scheme.

Fast property sale expert Julian King adds, “The lack of buyers will continue to prove concerning for people looking to sell their home payday advance. Those looking for a quick house sale will find this even more distressing.

“Fewer buyers means the price must come down. Homeowners looking for a quick sale are advised to consider property sale options other than the traditional estate agency route”.