Apr
24
24/04/2008
Gordon Brown and Allistair Darling are facing opposition from their own back benchers over the controversial removal of the 10p tax rate band. By no means will everyone lose out from this cut, but some could have debt problems exacerbated by unexpected reductions in their pay-packets.
Of particular concern are younger people who are already suffering because their fixed rate term has come to an end and their mortgage repayments have shot up, or they have just got on to the housing ladder and their income is already stretched. The 10p tax rate abolition will affect people under 25 who don’t quality for working tax credit and don’t have children, plus those working part time without children.
The cut coincides with steep rises in fuel and petrol prices, plus higher supermarket bills. World economies are concerned about the cost of food and urging us to be less wasteful – a lesson we should all learn – but cutting back on a few groceries is almost certainly not the cure for those who face real debt problems. Whilst the 10p rate cut is unlikely to push anyone into serious debt, it could be the straw that breaks the camel’s back.
Credit card debt is endemic in today’s culture but that may have to change as the banks and other lenders start tightening the purse strings. Last summer (2007) the UK’s consumer debt rose higher than our level of Gross Domestic Product (GDP), a critical indicator of the state of the British economy. This was fuelled by the ease with which almost anyone could borrow money, regardless, it seemed, of their credit rating or ability to pay.
When debt gets out of hand it is a major cause of stress, family problems and even breakdown. If you are facing debt problems the best course of action is to talk to your lenders and take advice from voluntary or charitable organisations that will be able to help you budget and, in some cases, liaise with lenders or creditors on your behalf. These people are non-judgmental and have resources at their fingertips to help you.
If your home is under threat of repossession or your levels of debt are serious enough for you to consider bankruptcy, then you need to take action. You might want to sell your home so that you can make a fresh start or raise cash to pay off your loans; relocating to a cheaper area may be an option, or moving into rented property might give you the chance to get yourself back on a solid financial footing.
In the current housing market, selling is not easy. Talk to Property Rescue about their guaranteed offer for your home, plus their sell and rent back scheme. There are no hidden costs in the offer they make, you don’t have to pay for a valuation on your property, and everything is done in complete confidence. There is no obligation to proceed and you won’t be subjected to ‘hard sell’ tactics. Property Rescue could be the answer to your debt problems. Give them a call today and move on with your life.