Struggling borrowers `must contact their lender`

Consumers who are struggling with debt problems must contact their lender.

This is according to the Building Societies Association (BSA), which suggested that the government must convey to people the importance of taking such action if they are experiencing financial problems.

"It remains the case that as soon as borrowers believe they may have a problem, the most important thing is that they should contact their lender as soon as possible to allow the best solution for them to be determined," stated Paul Broadhead, head of mortgage policy at the BSA.

He added that taking possession of a property is the "last resort" for building societies, which prefer to develop individual solutions to arrears problems.

Recently, the Association of British Insurers said that people who take on the responsibility of debt should take out insurance in case they are no longer able to meet their repayments due to a drop in their income.