Latest Debt News
Preparing a budget 'essential' for tackling debt problems
16/07/2008 17:10:00
For people struggling with mortgage repayments it is essential to prepare a budget, according to one financial charity.
With numbers of people seeking debt advice on the rise since earlier this year, the Consumer Credit Counselling Service (CCCS) has said a fifth of people calling for assistance have "simply borrowed too much", making repossession the only way out.
Frances Walker, a spokesperson for the CCCS, stated anyone struggling to repay debts and mortgage repayments must create a budget for themselves.
"If you are then in difficulties and cannot make your mortgage payments, you have to go along to your mortgage company and show them your budget," she explained.
She said repossessions were particularly evident for "the less well-off" and first-time buyers.
There has been a 21 per cent increase in repossessions in the UK this year, according to figures from the Council of Mortgage Lenders (CML).
Calculations from the CML showed 27,100 homes were repossessed this year, the highest number since 1999.
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