The Debt Test: Are You Making Out A Mountain Out Of Your Mortgage?Written by Rachel Lane
According to Council of Mortgage Lenders, first-time buyers are most susceptible group of homeowners to debt, as they are more likely to have higher loan-to-value ratios and commit a higher proportion of their income to mortgage repayments. Despite their susceptibility to debt, there is evidence which indicates that insurance take-up and employee benefits provide recent first-time buyers with a safer foundation than general population of mortgage borrowers.
The Council of Mortgage Lenders (CML) has become increasingly concerned about ability of current and future home-buyers to pay back mortgages in event of changing circumstances. Over past five years, CML and its partners within Sustainable Home-ownership Initiative, have sought to improve this issue. Contributing factors to problem include increasing personal debt levels and a less certain economic environment. This has provoked concern about sustainability of home-ownership and consumer understanding of financial products, ensuring that issue of mortgage risk is at top of agenda for UK Government, industry regulators and public as a whole.
Over last year, Sustainable Home-ownership Initiative has debated most effective move forward to increase home-buyers’ awareness of potential debt and protection from unforeseen events with insurance products, specifically Mortgage Payment Protection Insurance (MPPI). The Financial Service Authority is leading way to help raise awareness of debt prevention with “Debt Test” initiative.
According to research carried out by Council of Mortgage Lenders, two thirds of recent first-time buyers say that an online debt test designed to help them assess potential triggers of debt and highlight future borrowing risk would be useful.
Online Debt Consolidation Services - Lower Your Monthly Payments NowWritten by Carrie Reeder
Consumers looking for a way out of debt may want to consider services of a debt consolidation firm. If you are spending more money than you can reasonably afford each month on paying credit card bills, medical bills, or other types of unsecured debt, a debt consolidation firm may be able to help you become debt free much faster than you ever expected. Instead of making several large monthly payments to each of your creditors, debt consolidation firm can show you how to make only one monthly payment at a much lower monthly cost.
As unlikely as it may seem, your creditors pay most of costs associated with debt consolidation. Creditors understand that receiving lower payments from you each month and lowering your interest rates is preferable to your filing bankruptcy or simply becoming unable to pay at all. Debt consolidation will allow creditor to at least recover principal amount owed on your account. The creditor will get a tax write-off on any lost money owed to them in form of interest and you will still pay original debt.
If you are like numerous other consumers who have found themselves unable to pay even minimum payments on your credit cards and unsecured debts, contacting a debt consolidation firm can be best decision you will ever make. One monthly payment instead of many and sometimes dramatically lower payment amounts can relieve you of stress you currently feel, stop creditors phone calls, and help you get out of debt a lot sooner than you could on your own.