The number of homeowners seeking help with debt problems has risen by more than 50 per cent since 2008, the Debt Advisory Centre – part of the “Think Money Group” which provides debt management plans – has reported.
The organisation has seen a significant rise in homeowners visiting its debt solutions website over the past five years. Debt problems are a big worry but can be genuinely serious for homeowners who fear they may lose their family home. To avoid things getting to that point, individuals need to take action as soon as they feel the problem is getting out of control.
The figures suggest that many homeowners have taken on mortgages they cannot afford to repay and that some can only afford their mortgage payments as a result of current low interest rates. This means that they could begin to struggle to make repayments when the Bank of England eventually increases its base rate. If people are struggling to make ends meet because they can not afford large repayments, they might wish to consider a debt consolidation loan, which could reduce the amount paid out each month. A loan would take time to pay off and the total amount including interest which would be needed to repay the debt would increase, but it could reduce the immediate stress of the financial situation.
It is always advisable to seek help as soon as financial difficulties begin to arise. At Palmers we can provide professional guidance on many insolvency matters. Contact Andrew Skinner for more information.