As the debt crisis deepens, more families are finding themselves in the unfortunate position of being unable to stop repossession.
The need to stop repossession has never been greater. Debt charities have reported a massive rise in the number of people coming forwards for help not just with their credit card debts but with mortgage arrears. Getting into financial difficulties and being unable to keep up with mortgage repayments puts you at risk of repossession – once you're in mortgage arrears it can be harder than ever to stop repossession.
Harder to Stop Repossession
And grappling with debt is an escalating problem. The 'coping classes' are those home owners struggling to keep in the black as their household bills rise, petrol costs escalate and inflation hits their mortgage repayments. For those already walking the affordability tightrope, all it takes is a stroke of bad luck, such as illness, redundancy or legal fees, to leave them in a position where they're unlikely to stop repossession. The credit crunch is also having a rippling effect on the high-income earners who are losing big bonuses and high-end salaries as the finance industry struggles in the global markets. Some are at risk of being unable to stop repossession as the threat of redundancy looms, others simply can't maintain their expensive lifestyles and big mortgages.
Stop Repossession – The Debt Trigger
It's thought leading debt advice charities are dealing with over 6,000 debt problems a day across the UK. Debt is one of the leading triggers to house repossession and the fall out from debt is wide-reaching – the inability to stop repossession is impacting on mental health support agencies for example, as debt can trigger emotional problems including anxiety and depression. Although the Council of Mortgage Lenders has estimated 45,000 repossessions this year, some fear the figure could rise as up to 70,000 may find themselves unable to stop repossession.
Mortgage Difficulties lead to Repossession Risks
The UK already has the highest level of consumer debt – something that will get worse as 1.4 million homeowners come to the end of their more affordable fixed rate deals this year. Borrowing money in general, whether it's via a mortgage or personal loan, will be increasingly expensive, making being in debt increasingly unsustainable. This can lead to many families struggling to keep it together financially and unable to stop repossession. Economic downturns inevitable translate into a housing crisis. And debt charities have reported a huge surge in people desperate for help with their mortgages, looking for ways to stop repossession.