Property News > PERSONAL DEBT DISASTER?

PERSONAL DEBT DISASTER?

Personal debt figures are always hitting the headlines. But what do these figures include and how many people in the UK do they affect?Personal debt can be divided into three basic categories - secured lending (i.e. a mortgage), unsecured consumer lending (for example, a loan for your car or for your furniture), and credit card debt. Over the past ten years all three types of debt have spiralled upwards and at the end of 2006 the nation's personal debt total topped ?1,291 billion. In the month of December 2006 alone, consumer credit lending grew by ?1 billion.

The average household debt is now almost ?8,800 and that doesn't include mortgages. Of course, for every household that has a debt there is one that has no debt whatsoever, so this average figure means that some households owe way more than the ?8,800 mark and, in all likelihood, their debt will be increasing rather than diminishing especially where debt has been run up on high interest credit cards. It's a fact of life that some people can't even keep up with their interest payments let alone start to repay the loan itself. It's estimated that around one in ten people in the UK have 'unmanageable' levels of debt.

Perhaps the worse thing that can be done about personal debt is….nothing! To stick one's head in the sand and refuse to face painful truths about financial circumstances is never the answer. The local Citizens Advice Bureau will be only too pleased to help you work out how best to go about repaying your debt and examine the options with you, explaining the consequences of personal bankruptcy and, in some cases, liaising on your behalf with the companies to whom you owe money.

For the unlucky few, personal debt goes beyond their credit card and starts to threaten their everyday security and welfare. If you are under threat of having your home repossessed because you are unable to keep up your mortgage repayments, you need to take action as quickly as possible. Ignoring the problem will not make it go away! Property Rescue can offer a lifeline to people in this situation through purchasing their home but allowing them to stay where they are as tenants. They also give the option for the sellers to buy back their home at a later date if they wish to do. If they decide not to, there's no obligation for them to proceed and they can simply stay where they are, continuing their occupation of the property as tenants.

Selling your home is never the first option, but for some it can mean the difference between a secure family life and becoming homeless. Another huge advantage for those who have accrued considerable personal debt is that the sale of their home frees up money to clear those debts and start again with a clean sheet. Property Rescue will talk to you about how this can be achieved at the time your home is valued.

There is never any obligation to proceed once Property Rescue have given you a valuation on your home. You won't be hassled by salespeople calling or phoning, and even if you do go ahead, the whole process is discreet and completely confidential. You can find further details on 'sell and rent back' and 'buy back' options on the Property Rescue website.
 

Personal debt figures are always hitting the headlines. But what do these figures include and how many people in the UK do they affect?

Personal debt can be divided into three basic categories - secured lending (i.e. a mortgage), unsecured consumer lending (for example, a loan for your car or for your furniture), and credit card debt. Over the past ten years all three types of debt have spiralled upwards and at the end of 2006 the nation's personal debt total topped ?1,291 billion. In the month of December 2006 alone, consumer credit lending grew by ?1 billion.

The average household debt is now almost ?8,800 and that doesn't include mortgages. Of course, for every household that has a debt there is one that has no debt whatsoever, so this average figure means that some households owe way more than the ?8,800 mark and, in all likelihood, their debt will be increasing rather than diminishing especially where debt has been run up on high interest credit cards. It's a fact of life that some people can't even keep up with their interest payments let alone start to repay the loan itself. It's estimated that around one in ten people in the UK have 'unmanageable' levels of debt.

Perhaps the worse thing that can be done about personal debt is….nothing! To stick one's head in the sand and refuse to face painful truths about financial circumstances is never the answer. The local Citizens Advice Bureau will be only too pleased to help you work out how best to go about repaying your debt and examine the options with you, explaining the consequences of personal bankruptcy and, in some cases, liaising on your behalf with the companies to whom you owe money.

For the unlucky few, personal debt goes beyond their credit card and starts to threaten their everyday security and welfare. If you are under threat of having your home repossessed because you are unable to keep up your mortgage repayments, you need to take action as quickly as possible. Ignoring the problem will not make it go away! Property Rescue can offer a lifeline to people in this situation through purchasing their home but allowing them to stay where they are as tenants. They also give the option for the sellers to buy back their home at a later date if they wish to do. If they decide not to, there's no obligation for them to proceed and they can simply stay where they are, continuing their occupation of the property as tenants.

Selling your home is never the first option, but for some it can mean the difference between a secure family life and becoming homeless. Another huge advantage for those who have accrued considerable personal debt is that the sale of their home frees up money to clear those debts and start again with a clean sheet. Property Rescue will talk to you about how this can be achieved at the time your home is valued.

There is never any obligation to proceed once Property Rescue have given you a valuation on your home. You won't be hassled by salespeople calling or phoning, and even if you do go ahead, the whole process is discreet and completely confidential. You can find further details on 'sell and rent back' and 'buy back' options on the Property Rescue website.

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