Consumers who take out unsecured and secured loans when faced with debt are just 'compounding the problem', one financial expert has claimed.
Fool.co.uk said that if a homeowner is having difficulty making repayments on a mortgage, then they should speak to their provider rather than trying to solve the problem on their own.
David Kuo, head of personal finance at Fool.co.uk, said that some think they can hide behind their credit cards when this does not solve problem.
"They should go back to the lender and ask for help and I think the lenders will think of possible solutions for these people because the lender doesn’t really want to take your home away from you," he stated.
According to the financial advisor, the length of a loan can be stretched to 26 years as a way of reducing monthly outgoings and repayments.
A report by the TDX Group, published in April 2008, found that 400,000 people took out new solutions for unsecured debt in 2007.
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