High earners struggle with debt

High-earning borrowers are now facing debt problems as a result of the credit crunch, an article in the Guardian reports.

According to the Guardian, Tim Moss, head of loans for Moneysupermarket.com, believes that the `financial problems now faced by these high earners are a direct result of the credit crunch. Whereas before they could easily transfer credit card balances to no-interest cards, those deals have now dried up`.

He went on to note that `in the past, borrowers who found their credit card payments were getting out of control could consolidate their borrowings, either through a personal loan or by extending their mortgage. But banks have become nervous about lending to anyone not already a customer or who does not have a large amount of equity (think 40%-plus) in their property`.

The article concludes with a selection of tips designed to help all readers take control of their finances and avoid debt: for example, some guidance on budgeting and the benefits of speaking to a professional debt adviser.

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