In the U.K. bankruptcy is rising at an alarming rate. If you don’t break out of the debt cycle, bankruptcy could be your FINAL DESTINATION!
The collapse of the housing market and ease of obtaining credit in the past have led the UK economy deep into recession.
Debt is money that does not belong to us. Debt also needs to be repaid with interest. When credit was so easily available, people who earned a low or modest income could obtain credit very easily and eventually fell into a debt trap. When their monthly repayments became too high, they felt their only option was to fend off creditors with more loans or more credit cards. They did this in the hope that as long as the immediate situation was remedied today, tomorrow would take care of itself.
Of course, tomorrow very rarely takes care of itself and now, the days of obtaining cheap credit are well and truly over.
If you’re considering remortgaging your property to consolidate all your debts, think again! You are basically getting further into debt but this time, the debt is secured on your home.
Have you considered the risks you are exposing your family and yourself to? What if you become unemployed or are made redundant? What if the interest rate rises? You might have heard this all before but this is a reality faced by many every day! – “Your home is at risk if you cannot keep up with your mortgage payments and any loans secured on it”. Fact! 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 very serious matter and it should never be taken lightly. If you are declared bankrupt, you will lose all your assets and your home. You will no longer have any control over your finances, including your income. Your situation will be made public in the local press! Apart from the loss of your physical possessions, it will be a long time before someone gets over the emotional trauma resulting from a bankruptcy. Even if you are 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 any credit, never mind buying your own home again.
The only way to properly tackle debt is to pay it off! Drastic action must be taken 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 we can help. We have buyers who are ready to buy your property with cash within 28 days.