Post Christmas Options

December 11, 2007 on 11:15 am | In Debt Management, Remortgages

What never ceases to amaze me is the number of people who do not think that their mortgage is a debt. So it follows that when they remortgage to consolidate unsecured debt they see that as a license to run up further large bills on their credit cards and obtain unmanageable loans.

This is all well and good in a buoyant property market and when lending is cheap. However, when the lenders decide to withdraw products which allow remortgages over 75% loan to value (‘LTV’) and interest rates creep up, then remortgaging to repay debts is no longer a viable option.

There are in the region of 1 million people due to come out of the fixed rate mortgages in the coming weeks. Their monthly mortgage payments will sky rocket. Christmas spending is set to be at a record high with the majority of spending on credit cards. Banks have cut interest rates marginally but this will not repair the damage done by the credit crunch.

When the first credit card bill hits in the New Year it is essential you get good debt advice.

 

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