Consumers in debt advised to maintain important insurances

As many homeowners’ fixed-rate mortgage deals expire this year and living expenses rise, leading debt management provider EuroDebt is advising individuals to maintain their insurance policies when tightening their budgets.

More than three million home owners may be forced to make higher mortgage repayments of anywhere between £30 and £300 each month as their fixed-rate deals come to the end and a number of banks continue to up their rates.

Kevin Still, director at EuroDebt, said: “The problem is that as soon as people start falling behind on their payments they look for the easiest way out,” according to Introducer Today.

However, he advised individuals against neglecting payments on items which they do not consider a priority, such as household contents insurance, life insurance, medical insurance and critical illness and payment protection policies.

Additional financial pressures may stem from increasing living costs, including a rise in council tax charges and home fuel prices.

David Kuo, head of personal finance at Fool.co.uk, commented yesterday that he believes it will be “later rather than sooner” before credit conditions improve.

Tags: number, Financial economics, Introducer, management, priority, policies.Additional financial pressures