free credit report UK from Experian

  • Are your monthly credit card repayments higher than your monthly mortgage payment?
  • Will you still be able to afford the minimum payments on your credit cards and loans in 3 months time?
  • Do you need help to manage and clear credit card debt and unsecured loans?
  • Are you paying credit cards and loans before you pay your mortgage each month?

Some consumers are finding that the payments they are making to credit card and loan commitments each month are getting, or have already gotten higher than the payments they are making to their mortgage or rent.

This is a very common problem but most people think they are the only people suffering with this problem until they seek professional debt consolidation help or advice.

Debt Solution Finder

The problem is common because the credit card payments and balances are compounding with interest and charges. It is a fact that if you are unable to earn two months money in one month, you may never get ahead. This is because the cards are designed to increase if you are not paying more than the minimum payments.

Most people think that by paying the minimum payment each month on a credit card that the balance will stay the same or reduce, this is not the case. You need to pay more than the minimum otherwise you are only servicing or renting the increasing debt. The aim is obviously to reduce and clear it.

The UK consumer is conditioned to living with some sort of unsecured debt or borrowings, be it a loan, credit card, store card, overdraft, catalogue, or some other form of unsecured credit but this is not the best way to be if you desire a future without financial problems.

Here at Lewis Alexander Financial Management, we see mortgages as a “life debt”, this is because at some point in life, most UK residents over the last 50 years were educated to believe that owning their own home, is or was, the best way to end up in life financially. We are not here to argue that point and when we look at other large European countries such as Holland, home ownership is on the decline and renting is of preference to most of the population.

The real problem is that consumers are not prioritising the secured mortgage or 2nd charge secured loan payments on their home over the unsecured contractual credit commitments they may have.

If you are doing exactly this, making sure your credit cards are paid so you can keep using them, then you need financial advice, immediately.

We cannot stress how soon the financial advice should be sort as your home is at risk if you do to keep up repayments on loans or other forms of debt secured on it.

Which would you prefer to lose if you had to make the choice, your credit rating or your home?

  • If you fail to pay your mortgage you can lose your home!
  • If you fail to pay your credit cards, only your credit will be affected in the short term!

We are not saying that you should ignore your credit card or loan companies you may be borrowing from! You must simply prioritise your secured loans such as a mortgage, over these other unsecured debts.  Then you can come to an arrangement with your unsecured lenders to repay at a rate you can afford without sending yourself further down the line of possible mortgage arrears.

It is not often that we hear that a client has been told to prioritise their mortgage payment over the credit card payment by the credit card companies they owe money to. We cannot change the way they work but we can off the correct personal financial advice to a consumer.

  • When we explain how the priority works for secured credit over unsecured credit, consumers are often pleasantly surprised. It is a principle of law that secured or priority debts do take priority over any unsecured financial commitments a consumer may have.

The most common situation at the moment for homeowners in the UK is that they are struggling to manage their credit card and loan repayments and because of this, balances are compounding against them and growing at an uncontrollable rate. The consumer then starts to miss mortgage payments, be them interest only or repayment as they wish to try and keep the credit card and loan companies happy.

You must accept that if you find yourself struggling with the above problems you need to take the financial advice mentioned above sooner rather than later.

There are a number of personal debt solutions that can help you to control, manage and subsequently clear the debt you may have which should leave you without mortgage arrears and give you some sort of end to the financial difficulties you may be facing.

Find out about Debt Management Online

Find out about an IVA or Individual Voluntary Arrangement in England

Find out about Bankruptcy in England

Find out about Debt Solutions in Scotland

Find out about Debt Consolidation Loans

Find general Debt Help and advice

If left, the personal debt problem will only get further out of control, unless that is, you are lucky enough to win the lottery or get paid for several months work in return for a normal months effort, which, is unfortunately, unlikely to happen!

  • Do not leave it any long to seek professional advice if you have mortgage arrears or other secured loan problems.
  • The longer you leave it to take advice, the less able anyone will be to help you.

Sometimes, we have to tell people that have left it too late that the only help they could get is from the mortgage company who is actually pressuring them. If you do not fall behind with the mortgage, you will not have to make that call, so do not make the mistake of prioritising unsecured credit card and loan repayments over your monthly mortgage payment or repayment.

  • The advice we are offering above relates to interest only and repayment mortgage arrears.

We are not offering mortgage advice in this blog post but advice on dealing with mortgage arrears that are affected and created by other unsecured credit agreements which we would usually be able to help you clear and control.

Personal Debt Test

If you find yourself struggling with the above personal debt problem and feel you would benefit from professional debt consolidation help or advice from a trained debt consultant, please contact our personal debt helpline today in absolute confidence.

Call 0800 018 6868 free today

Lines are open 24 hours / 7 days

Calls are usually free from a UK land line

Calls from mobile may be less expensive if you call 0161 872 3383

Find us on Google+

Over One Million to Face Increased Mortgage Repayments

On May 1, 2012, in News, by Lewis Alexander
  • Are you one of the million plus people in the UK facing increased mortgage repayments?

  • Do you think you will struggle to make ends meet with increased mortgage repayments?

News in the domestic financial mortgage industry reports that over one million UK homeowners are set to face increased mortgage repayments from today onwards.

Banks have been putting the reason for rate increases down to the general state of the economy and the fact that in a weak economy this is more of a requirement for them!

NatWest, The Royal Bank of Scotland (RBS) and Halifax are just a few of the mortgage lenders that intend to increase rates, these increases are expected to be no more than 0.5%, some being lower!

Other banks intending to follow suit are Clydesdale, The Co-Op Bank and Yorkshire Bank.

Even though the Bank of England has kept base rates at a low, it seems that the banks have made the decision to impact a great number of existing customers.

  • This 0.5% rise is expected to increase the average monthly mortgage repayment by approximately £55 on a mortgage of around £200,000.

Responsible lending is being policed by the financial authorities and moving mortgage provider may become difficult for those who have fallen into mortgage arrears or possibly have negative equity in the property they own.

  • If you are struggling with mortgage arrears and other forms of personal debt, these financial  problems need dealing with urgently as they don’t go away without a decent sized lottery win!

Personal debt consolidation companies can help you to clear mortgage arrears and restructure your personal unsecured credit accounts so that the mortgage can be prioritised as it should be and other creditors can get a share of what you have spare!

There are a number of debt consolidation options that can assist people in need of financial help due to mortgage arrears.

  • If you think you would benefit from tailored financial help then please call our personal financial helpline today, it’s free from a land line and our lines are open 24 hours a day / 7 days a week.
  • Call 0800 018 6868
  • Mobile call costs may vary!
Find us on Google+

£3.6 Billion Credit Card Debt Written Off

On February 29, 2012, in News, by Lewis Alexander
  • free credit report UK from Experian

    Do you know how much credit card debt was written off in the UK last year?

  • £3.6 Billion!

Outstanding credit card debt to the tune of £3.6 billion was written off credit cards in the UK in 2011, the figure of credit card debt written off in the previous year (2010) was approximately £5 billion.

  • What does this say about the way people are dealing with outstanding financial commitments?
  • Are people simply walking away from their credit card debts and choosing an alternative solution to getting out of debt such as going bankrupt.

Sometimes when circumstances change for an individual, personal debt becomes the last thing that they are able to pay as the priority bills such as electricity or gas, water and council tax are also mounting up in the form of arrears.

There are more people enquiring for loans in 2012, for the purpose of funding every day general living than we have seen before in the last 10 years of servicing the personal loan industry in the UK.

If you are struggling with credit card debt and unable to manage your repayments, the most important thing to start with is making sure you are prioritising the right bills and credit agreements, you must not pay unsecured debts as a priority over expenses such as rent or council tax or mortgage arrears.

If you find yourself struggling with debt problems you should take advice, there are very few personal debt problems that cannot be solved, however, the sooner you seek advice, the sooner you can start to clear debts in a structured way, possibly by entering into an Individual Voluntary Arrangement or Debt Management Plan.

For help and advice regarding personal debt issues and the associated of problems of dealing with debt, please contact our debt helpline free from a land line, in confidence.

Lines are open 24 hours a day / 7 days a week.

  • Call 0800 018 6868 today.

Find us on Google+

Is this the return of the 100% mortgage?

On March 18, 2011, in News, by Lewis Alexander
  • free credit report UK from ExperianMuch maligned for its perceived part in the credit crunch, the 100% mortgage may make a return in the UK during 2011 as a matter of necessity to avoid plunging the UK banks into further swathing write-offs for bad debt.

A serious concern for the Monetary Policy Committee and leading economic advisors is that by raising interest rates in 2011 (arguably required to control inflation and encourage economic growth) it will plunge many customers currently in negative equity paying standard variable rate mortgage rates into a position whereby they can no longer afford their monthly repayments.

Such an impact is considered too great a risk to the economic recovery as large volumes of customers defaulting and banks suffering from reduced profits will undermine the fragile confidence in the banking system.  Therefore, the government owned banks (such as RBS, Lloyds TSB & NRAM) are rumoured to be ‘under significant pressure’ to review their lending policies for mortgages.

Essentially the choice offered is stark – either offer existing customers a reasonable rate on a fixed term or risk having to write off £millions more in bad debt as mortgage customers find it difficult to keep pace with rising standard variable rates as the MPC hikes interest rates, as expected, during 2011.

As recent market responses to bank results show, large provisions for bad debt do not help support high share prices so this is something that banks very much wish to avoid.

Put simply, if the banks don’t come up with decent deals, then there will be more people struggling to pay their mortgage payments and thus repossessions will increase and there will then be more people queuing at the door for social housing and less people from ‘Alarm Clock Britain’ focusing on the big society.

  • Still with us? We hope so!
  • So what does it mean for you and I?  Well not a lot if you bought your house before 2005 and haven’t taken any further loans secured against your house.
  • If however you bought at the top of the market or currently have a loan to value of 95% and more, then this may be of concern.  Worrying about being able to meet your mortgage commitments is not a good place to be in, and actually being in or having mortgage arrears is worse.

Failure to keep up repayments on a mortgage or any other debt secured on your home may result in you losing your home through repossession!

As debt management specialists, we may be in a position to help you change your current unsecured debt repayment arrangements to reduce the impact that an increase to your monthly mortgage repayments would bring.

Help is at hand and here at Lewis Alexander as we have personal debt specialists available to try and help you.  If you are in a position whereby your household finances are carefully balanced and any increase in your mortgage rate would cause a real difficulty then call us on FREE today using 0800 018 6868.

Find us on Google+
Find us on Google+