Homebuyers in need of a Debt Management Solution

You don't have to be a big spender, shopaholic, or live an extravagant lifestyle to struggle with debt. In fact recent figures show more and more homebuyers are looking for a debt management solution.

Mortgage debt dominates

Anyone who has managed to get their foot on the property ladder knows how much house prices have soared in the past ten years. Even though statistically income has doubled and base rate is 1% lower, the increase in property prices means mortgage repayments dominate our monthly outgoings. The implication of increased mortgages means more and more homeowners are seeking a debt management solution.

Long term investment

Although investing in a house can be a long-term investment and makes more sense than throwing your money away on rent, day to day living costs can become a struggle. House costs have almost trebled since 1996 and although incomes have also increased, the amount spent on mortgage repayments have also increased. In fact on average 26.8% of homeowner's monthly income goes on their mortgage, compared to 18.4% ten years ago.

Debt management solution

With this in mind, it's not hard to see why there has been an increase in homeowners releasing equity from their homes, or taking out secured loans or opting for another debt management solution.

Increased utility bills

Adding to the already gloomy increase in mortgage repayments, The Consumer Credit Counselling Service (CCCS) issued a report stating that their average client is paying an extra 32 a month on utility and council tax bills than they did in 2003.

Is it any surprise that more and more people are searching for a debt management solution?

Unsecured debt

According to recent research, the UK is responsible for a third of all of Europe's unsecured debt. More that 26,000 people became insolvent between January and March this year, an increase of 66% from the same period last year.

Concerns

Concerns have been expressed that even more of us will be looking for a debt management solution as gas prices increase. It is expected that British Gas prices will rise by 12.4% for gas, and 9.4% for electricity during the winter of 2006.

Already in debt

For those people already verging on debt problems, increased utility bills can be the last straw.

For advice on which Debt Management Solution is right for you, visit MRA Debt Help at www.mradebthelp.co.uk or call 0800 612 92 23.

For independent financial advice, visit our sister company, Mike Robertson Associates, at www.mraltd.com. You can email an independent financial adviser for professional help, or call 0870 803 1995.