A debt management advisory service firm, has made suggestions, towards homeowners, who are seeking to pay back their loans, could do so, by consolidating their repayments by using a secured loan.

Gregory Pennington, a firm, which provides financial advice to borrowers that are in need, stated that taking out a loan, can provide the necessary funds to aid them, through any economic problems that people who borrow may have to pay.

Their comments come after, the Bank of England's governor, Mervyn King said, that a slowdown in the economy was needed to lower the wage and price pressures. Also adding that the lowering of wages, will have a greater effect on the credit crunch than consumer spending does.

A spokesperson for Gregory Pennington said: "Homeowners may have more options if they own equity in their home rather than entering a debt management plan, it may be advisable to consolidate their debts through a secured loan."