As we all know a property company’s main objective is to maximise profit but it is extremely important to make buyers aware of how to avoid debt and avoid getting themselves into a sticky situation if a mortgage is taken out. We are a nation of aspiring home owners and you would think the financial crisis would put us off the idea of owing money to the banks but we are more than happy to take on debt so that we can have the honour of saying a house is our "own". New figures show that since 2007 mortgage lending is at its highest, first time buyers are in the majority because they are attracted to lower end house prices and shared equity incentives.
Recorded in July of this year the average household debt stands at £54,110 we have to bear in mind this is including mortgages, taking the current house prices into consideration it seems the average household is trying to avoid debt. Sometimes the bank can take a predatory approach when trying to secure a customer but at some point we as the customer need to take responsibility that we should read and be aware of what we are signing up for in every piece of paperwork before we go ahead with such a life changing commitment.
Property owners need to be more educated and should be more aware before signing on the dotted line as it isn’t just people with lower end incomes that get into financial difficulty home owners with stable jobs and good incomes can also find themselves having trouble keeping on top of payments for example if they have been persuaded to take out more than they are able to afford or their circumstances change. Organisation and budgeting are key to stop people from overlooking bills. By making sure everything is paid just after pay day means that any remaining income can be used for entertainment and you don’t have to worry about late fees. If credit is required to get by after a tough month, be realistic about your repayment date but also only take what you are able to pay back and seek advice before taking on debt.
If you are in debt and need help, a great place to go is DFH. Not only do the offer you an excellent track record of getting people out of debt, they do it in a professional and helpful manner. Just go to www.dfh.co.uk to find out more.