Borrowers bitten by debt
Consumers are finding it difficult to cope with their debts as increased base rates tip them over the edge.
Over 7000 loan repayments are being skipped as each day passes and over 1 million repayments have been missed during the last six months.
With rumours of interest rates rising further in the forthcoming months, more borrowers will add to this figure, as people hit major financial stress by being stretched to their limit budget wise.
Faced with a choice, people are more likely to skip repayments on a loan rather than a mortgage, as they do not feel that they have so much to lose with a loan.
Skipping any repayments are a sure fire way to fall into debt and damage credit ratings, but this is becoming inevitable as the majority of all income now has to be divided amongst mortgage repayments, utility bills and everyday living costs which leaves very little for other debt.
Missing repayments on secured loans is a very serious issue as people are at risk of losing their homes. It is strongly advised that people check the small print of their loan agreements so as they can be sure that they really do have an unsecured loan and not one which is misleadingly secured on their property.
Anyone who is feeling the pressure mount with rising debt should ideally, seek debt help before they reach the stage where they are unable to pay one of their creditors. This way, any problems can be nipped in the bud before debt takes a hold.
Savings News posted on 03/09/2007 10:31:59
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