Sunday, Feb 17, 2008
Lenders spooked that a US-style debt crisis is playing itself out in the UK
Independent: The debt advice that adds to the problem
Figures from the Council of Mortgage Lenders show that about 130,000 people in the UK are three months or more behind with their mortgage repayments. Spooked that a US-style debt crisis is playing itself out here, lenders are busy urging homeowners to contact them as soon as they find they can no longer cope with the bills. But even if they act responsibly and seek help with their debts, overstretched borrowers could still find themselves in for a shock, through the imposition of fees for a debt or arrears counselling service.
Posted by jack c @ 01:01 PM (379 views) Add Comment
4 Comments
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1. Plato said...
Over valued property prices are at the heart of these problems and unfortunately the only way out of this ridiculous mess is a drastic lowering in property values. A lot of people are going to suffer as this market sorts itself out to some kind of reasonable level again. The UK is particularly vulnerable as the cost of living is at an almost crippling level,never mind the debt as well.
There has to now be a change of attitude regarding investment in private property and this should be actively promoted by a responsible Government. It is ridiculous to believe we are sitting on a fortune but have to live in it,then borrow and borrow on it's hypothetical value as the cost of living follows this "wonderful rise in value".
The UK should be Producing and Trading - not Wasting and Speculating. It is quite capable of doing this. It has acheived this before and was once Famous for this. Poor leadership is the axis of this problem. Intelligence is measured by Vision not Dreams and certainly not by the amount of money one possesses. Any crook can get money and it seems no matter how we get money this is OK. With this kind of guiding leadership it is lost as quickly as it is made.
Finally : I keep hearing the word Democracy spouted about by Western Leaders but I find that an insult to my name and origin. How long will it be until we are not allowed to express ourselves?
2. alan said...
"A spokeswoman for the Halifax, which levies a £100 fee when referring customers to an external debt counselling service, says: "We are open about our charges. The approach of our debt counsellors is to gain a full understanding of the customer's personal circumstances with the aim of arranging a mutually agreeable arrangement."
Is £100 fee that bad for financial advice? ....bearing in mind many people owe over £100,000. I don't think so.
If you can't manage debts then it's best to ask someone and get advice. Locally, I voluntartily assist a church based debt advice center which offers support free. The local CAB also provides advice, but has a very big waiting list.
I suppose the moral of the story is to get your finances organised, and be in charge of them before the mess hits the fan.
3. stillthinking said...
"Surely lenders, from their huge profits, could pay for access to a free independent counselling service?"
ummm.... The huge profits they made from lending to people who can't pay the money back ? The profits causing the lay-offs ? The profits that generated huge bonuses ?
Which ones?
Surely the problem is that getting organised, consolidating loans and being responsible contacting the lender won't help because not being able to make the payments is the end of the road. Lucky for NR mortgage holders though, now its being (apparently) nationalised you will be able to get a debt councillor matched to your own race, creed and sexuality, and receive a taxpayer funded holiday in the Bahamas for stress incurred trying to rent off some idiot struggling worker for more than the value of the mortgage you need to pay.
4. crash bandicoot said...
I have read on here before that there will be no crash without forced sellers. It looks like they are starting to arrive.