Debt Management – Mortgage Fears
More homeowners in the UK are seeking debt management help to try and get out of a financial fix. And although there is a popular image of consumers over-spending, putting holidays and consumer goods onto credit cards and store cards, many families are simply struggling to meet the ever rising cost of living. In the past couple of decades banks and lenders were keen for customers to take on loans and large mortgages. The high cost of housing forced many into over-stretching themselves in the hope their properties would be a worthwhile investment. As house prices stagnate, it couldn't be a worse time for these homeowners. Debt management strategies could help, but the Council of Mortgage Lenders estimated that up to a million homeowners are at increased financial risk. Those coming to the end of their fixed rate mortgage packages, who borrowed 3.5 times their salary or more, or who put a deposit of 10% or less down, are most vulnerable to repossession risks.
Debt management – Outgoings outstrip income
Simple maths shows that in many cases, outgoings simply outstrip income. A survey by Scottish Widows shows that almost half of UK families need two or more salaries to cover their bills and live comfortably. It's a distressing find for one-parent families, single people, families who have a stay-at-home parent, retirees, or anyone with dependents who can't or don't work. For those already juggling debt, debt management schemes could help such as an IVA or debt consolidation loan. IVAs can wipe out un-payable debt without the stigma of bankruptcy; and debt consolidation is one way of combining many debts with varying interest rates into one single payment at a lower fixed rate.
Higher cost of living increases debt
High household bills, increases in utility rates, large mortgages, credit card debts and other loans, as well as the rise in the cost of food and petrol, are all being blamed for this widespread debt crisis. As many homes rely on two salaries, the risks are high if one person has to stop work due to redundancy, ill health, a new baby, divorce or career break. Richard Jones, a spokesperson from Scottish Widow, told the BBC: “This reliance on two incomes to buy and run the family home means millions of households are effectively doubling the risk of financial hardship should one of the breadwinners become unable to work.”
Debt management help needed
The recent news report on the rise of the ‘white collar tramp' shows that debt, repossession and homelessness are impacting on all sectors of society. Many high earners who have taken on too-high mortgages are also vulnerable during the credit crunch as bonuses and pay rises are being turned down and mortgage payments and outgoings turned up. Debt management strategies could help regain control of your finances if you have mortgage fears and are worried your debt is spiralling.
Speak to Kensington Finance for debt consolidation and debt management solutions.
Kensington Financial Management Consultants Ltd is a total finance solutions company helping people all over the UK. We speak financial sense. We will allocate you a friendly advisor who will chat through your current situation and formulate a plan for you without obligation. Let us work out a financial solution based on your individual circumstances. It's our aim to help everyone who contacts us. With debt solutions from debt management and IVAs, mortgages & re-mortgages, secured & unsecured loans and advice and information for debt consolidation, bankruptcy and Trust Deeds, we can help. It really is worthwhile giving us a call or applying online today for a confidential chat with one of our friendly advisors. Call FREE on: 0800 096 4409.