Property Rescue Blog

Did Christmas leave you with the type of hangover that can’t be cured by a couple of aspirins and a cooked breakfast?  If so, you’re not alone. 

The Financial Services Authority carried out a pre-Christmas survey that showed people were more likely to resolve to go on a diet or book a holiday in the New Year than try to deal with the bills they’ve run up over the festive period.  Apparently as many as one in ten shoppers were still paying back last year’s Christmas bills whilst running up further debt on their credit cards to finance this year’s purchases.

The post Christmas period is the busiest time for debt counselling organisations, whilst websites that deal with debt problems have a significant increase in visitor rates during January.  The Association of Business Recovery Professionals is seeing a record number of people getting into serious debt problems, with some of them having no option but to go down the route of insolvency or bankruptcy, running the risk of losing their homes and putting enormous strain on their relationships.

All these organisations stress the importance of having a debt repayment plan to break the cycle of debt, something that Property Rescue would endorse.  Even in cases where levels of debt are high, having a proper plan in place, which is agreed by both you and your lenders, is bound to help avoid County Court Judgements being served against you and will lessen the risk of losing your home.

Home repossession is a huge trauma to any family.  The disruption to normal life caused by children having to change schools, adults moving away from neighbours and friends, losing the support network offered by nearby family, and downsizing to a smaller property or inferior neighbourhood all take their toll.  That is all in addition to the financial problems, which are often far from over even once the house has been repossessed by the lender.  Credit ratings will inevitably suffer and new credit, including mortgages, will be hard to come by.

Even when debt problems seem overwhelming, it does not necessarily mean that you need to forgo the home you love in order to pay back what you owe.  Property Rescue’s sell and rent back plan provides one option of dealing with the situation, allowing you to stay in your home as a tenant after the sale has been completed and your debts have been paid.  Property Rescue always carry out discussions in complete confidence and promise to make a ‘no obligation’ offer on your property.

Don’t ignore debt problems because they won’t go away.  If you have levels of debt that are mounting and your home is under threat, call Property Rescue without delay.

As Christmas approaches more and more of us turn to our credit cards to provide the funds we need to finance our seasonal purchases.  Despite the concern emanating from retailers it looks as if we are set to spend record amounts again this year.  During the Christmas period consumers in the UK are expected to shell out an amazing £53 billion, approximately two thirds of which is likely to be made on plastic.

There is a boom in internet sales driven by more people getting online, more choice online, and lack of time to shop in the high street.  More than ten per cent of sales this Christmas are expected to be made online, equating to somewhere in the region of £5.6 billion, most of which will be paid for using credit or debit cards.

Using credit cards sensibly over the Christmas period can help you spread payments as well as provide a convenient way to shop that often gives you added protection through the card’s own refund or insurance policies.  But spending simply because you have plastic in your wallet can mean that you are storing up a crisis for the New Year.  Remember to check the interest rate your card offers: many cards carry very high rates of interest and are really only suitable if you pay back your balance in full every month.  Bear in mind that failure to pay means you will be running up a debt in interest charges alone, never mind the balance.  If you get into debt on your card you could find that your credit rating is adversely affected.

People with serious credit problems should take action and not bury their heads in the sand.  Credit problems don’t go away and have a nasty tendency to get worse!  Find out what your rights are and if there are any benefits you are entitled to (for example if you are unwell or unemployed) by contacting the local Citizens Advice Bureau.  Talk to your bank, mortgage company or lender as communication is always essential in these situations.  If you are considering the possibility of selling your home to pay off your debts, you don’t necessarily have to move out.  Property Rescue has a ‘sell and rent back’ scheme that allows you to remain in your home as a tenant after the sale has gone through.  Selling your property can be an excellent way of paying off your debts and give you the opportunity to move on with your life, but it isn’t right for everyone.  The action you take depends upon your level of debt and your personal circumstances.  Always take independent professional advice before you take action!

Property Rescue will be happy to talk to you in complete confidence about how to sell your home fast, and they will explain their ‘sell and rent back’ scheme.  They promise to make a ‘no obligation’ offer for your home.