Bankruptcy in the UK is rising at an alarming rate. If you don’t break the debt cycle, this could be your FINAL DESTINATION!
The ease of obtaining credit in the past and collapse of the housing market have led the UK economy deep into recession.
Debt is money that does not belong to us. It needs to be repaid with interest. When credit was so easily available, people who had modest or low income could obtain credit and eventually fell into a debt trap. When their monthly repayments became too high, they fended off creditors with more loans or more credit cards, hoping that as long as the immediate situation was remedied, tomorrow would take care of itself.
Of course, tomorrow rarely takes care of itself and now the days of obtaining cheap credit is well and truly over.
If you’re considering remortgaging your property to consolidate all your debts, you’re essentially getting further into debt but this time, the debt is secured on your home.
Have you considered the risks you are exposing you and your family to? What if you get made redundant or become unemployed? What if the interest rate rises? You might have heard this before but it is a reality – “Your home is at risk if you cannot keep up with your mortgage payments and any loans secured on it”. How true! If you get repossessed, you and your family will lose your home.
Borrowing more money to pay debt is a vicious circle. It is a dangerous game which could lead to insolvency and bankruptcy.
Bankruptcy is a serious matter and should never be taken lightly. If you are declared bankrupt, you will lose your home and all the assets. You no longer have any control over your finances, including your income. It will be made public in the local press! Apart from the loss of physical possessions, it could be a long time before one gets over the emotional trauma resulting from a bankruptcy. Although you could be discharged after 5 years, The Department of Trade and Industry will keep a record of the bankruptcy for up to 15 years. It could be years before you are eligible to obtain anymore credit, let alone buying your home again.
The only way to tackle debt is to pay it off and take drastic actions to reduce your monthly outgoings. If you have equity in your property, you need to sell it as quickly as possible and use the cash to pay off as many debts as possible. This is how Network Property Buyers can help. We have buyers who are ready to buy your property in cash within 28 days.