The availability of credit may not improve in 2009, it has been suggested.

According to Charles Davis, economist at centre for economics and business research, unemployment will continue to rise this year and economic growth will be stagnant, with no guarantee of an improvement in lending levels from banks.

"I would remain cautious on the outlook for lending in 2009 … towards the end of next year we [will] maybe start to see some improvement in the City," he suggested.

Mr Davis stated it remains to be seen as yet whether the recapitalisation of banks has been successful, although he noted that interbank lending rates have dropped.

Louise Cuming, head of mortgages at moneysupermarket, recently said that lenders will focus on supporting borrowers suffering from debt management problems in 2009.

She added that there will be "no miraculous u-turn" in the low borrowing levels experienced last year.

Customers who have standard variable rate (SVR) mortgages from first direct paid the least interest during 2008, new figures have revealed.

According to data collected by Defaqto, borrowers who took out a £100,000 interest-only mortgage with the lender paid £5,918.16 over the last 12 months - £1,468.42 less than the most expensive deal, which came from Northern Rock.

Direct Line and HSBC also provided good deals for their customers, offering SVR mortgages which charged £6,180.14 and £6,322.27 in interest respectively.

Principal consultant of banking at Defaqto David Black explained that SVR mortgages have taken on "a much greater significance than in previous years" as a result of the economic downturn.

Customers who are looking to improve their debt management by switching their mortgage may wish to look into SVR offerings from first direct following publication of the data.

Leeds Building Society - which charges SVR customers £7,085.34 in interest - recently launched a range of new mortgage options for customers.

By Tom Musk

Consumers looking to reduce their outgoings in the new year have been urged to take advantage of more competitive financial products.

According to moneysupermarket.com, people who take advantage of cheaper mortgages, loans and credit cards could save up to £2,500 over the next 12 months.

The price comparison website has urged customers to shop around for the best deals, noting that borrowers who currently have a five-year, £10,000 loan with Mint at a typical annual percentage rate (APR) of 10.9 per cent could save £163 annually by switching to a Nationwide loan with a 7.9 per cent APR.

"People should review their finances on a regular basis and the turn of year is a great trigger to do just that," Clare Francis of the website remarked, advice which those struggling with their debt management may wish to consider.

Halifax recently called on consumers to switch to zero per cent interest credit cards, noting that this can help cut the cost of making purchases.

By Tom Musk

Making overpayments on mortgages is one method homeowners can use to improve their debt management, it has been suggested.

According to Halifax, overpaying by £100 per month on a £150,000 mortgage at a variable rate of five per cent can help reduce the amount of repayment needed by over £22,000 and cut the mortgage term by four and a half years.

Managing director of Halifax Financial Services Karen Crowshaw urged borrowers to seek the opinions of a personal financial advisor in order to help them improve their finance management in the new year.

"By making a few small changes today and seeking the appropriate advice, you could make some significant financial gains in the future," she explained.

Finance expert David Kuo recently warned against taking a mortgage payment holiday, stating that doing so can cause borrowers to fall into even greater debt in the future as they will face a bigger interest bill once they resume payments.

By Tom Musk

Single people are leaving themselves financially exposed, despite the increased availability of money advice, new research has found.

A study by Zurich revealed that 35 per cent of those without a partner are concerned about the added cost their marital status brings, while 70 per cent of singles are yet to seek advice from an independent financial advisor.

However, the survey also suggested that many are looking to readdress their financial priorities, with 45 per cent understanding the importance of having no credit card debt and 35 per cent agreeing maintaining their savings is also necessary.

Zurich’s Tony Solomon explained that the findings indicated "a real need" for financial advice among singles.

"An independent financial adviser can help to alleviate some of the stress and worry in making short and long-term financial plans, whatever your lifestyle," he explained.

Halifax recently urged those looking to improve their debt management to take advantage of the free financial advice currently available from lenders.

By Tom Musk

Those taking a mortgage payment holiday are putting themselves at risk of falling into greater debt, it has been claimed.

Head of personal finance at fool.co.uk David Kuo explained that those considering such move may end up paying more in the long term, as the interest will continue to accrue even though payments have been suspended.

"If you are taking this holiday for a month or a year, what you’ll end up with is a bigger interest bill at the end of the period, which will be added on to your loan," he noted, adding that government-backed payment deferral schemes operate on the same principles and interest will still have to be paid.

Those who had been considering applying for a mortgage payment holiday as part of a debt management plan may now wish to rethink their options.

Mr Kuo’s comments follow recent research by uSwitch.com, which found that as many as two million consumers are considering deferring their mortgage payments.

By Tom Musk

Mortgage providers will be increasingly focusing on providing support to borrowers who fall behind on their payments in the New Year, it has been predicted.

Louise Cuming, head of mortgages at moneysupermarket, explained that a growing number of people are likely to miss repayments as a result of the current economic climate and stated many lenders will have to ensure they have the correct support processes in place to "manage customers" experiencing such difficulties.

She also forecast that current low borrowing levels will remain unchanged, stating: "There will be no miraculous u-turn despite the government’s call to loosen the purse strings; the story of restricted choice and deals only for the ‘chosen few’ will remain."

Ms Cuming’s predictions follow research from Moneyfacts, which revealed that the majority of mortgages on the market are now fixed-rate deals as lenders look to withdraw cheaper tracker options following the recent cuts in the base rate.

By Tom Musk

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