Debt Consolidation A Matter of Life and Debt

As repossessions continue to increase, debt consolidation can help those homeowners struggling with mortgage problems. Many businesses opt for company voluntary arrangements in order to ease their debt problems.

The saying goes that a man’s home is his castle. Losing your home can be devastating – impacting on your identity, status and that all-important sense of safety, routine and continuation that your children need. Without effective debt consolidation solutions, mortgage arrears can swiftly turn into unstoppable repossession orders. Losing your home can impact on your future outcomes – you are more likely to slide into poverty if you don’t take crucial debt management and debt consolidation steps.

Debt consolidation – stop repossession

The huge rise in repossession risks has led some charities to approach mortgage lenders in a hope to help homeowners in debt. Shelter has asked for a new system to help homeowners in arrears to try and stop repossessions – which have reached their highest levels in the UK for eight years. As it stands however, debt consolidation and urgent debt management plans are necessary to stop the rigorous approach lenders currently take to those struggling with debt.

Dealing with debt – the increased repossession risk

House repossessions rose by 21% last year and the Council of Mortgage Lenders predict this figure will rise. Shelter believes many lenders are not encouraging those in debt to explore other avenues to avoid repossession. Debt consolidation and debt management strategies could help some homeowners dicing with debt. The situation is expected to be exacerbated as more homeowners come to the end of their fixed rate mortgage deals this year. For some, that could equate to another hundred pounds or so a month on top of their outgoings – unthinkable for those juggling debt. Debt consolidation is one way of taking control of your finances, ensuring you don’t have to lose your home.

Face up to debt stress with debt consolidation help

Debt can cause huge stress and anxiety. Many people who need debt consolidation solutions are not in debt because of a champagne lifestyle or extravagant spending but because of poor fortune such as illness, redundancy, divorce or bereavement. Debt consolidation offers one way of helping homeowners stay afloat at particularly vulnerable times. There is a stigma associated with debt, but as debt affects the majority of UK citizens, it’s crucial you don’t ignore it, put your head in the sand and take no action – debt consolidation or a debt management strategy from experienced financial advisors can help. Do something – today.