CAB reports rise in enquiries relating to mortgage arrears and debt
A recent survey has revealed that the Citizen’s Advice Bureau has seen a rise in the number of enquiries relating to mortgage arrears and debt related issues over the first part of this year. Money issues have always been one of the most commonly dealt with problems by the CAB, but with credit conditions tighter than ever and households facing huge financial woes, there has been a marked increase in the number of money related matters, including worries about mortgage arrears, that the CAB has been dealing with.
Many homeowners have been panicking over how to keep up with their mortgage repayments, as well as with payments on bills and other financial commitment, and this has been reflected in the increased level of enquiries. The CAB has confirmed that debt is the single most common issue that it deals with now, and the rise in the number of enquiries was revealed following a survey of three hundred CAB offices around the UK.
It was revealed that over January and February of this year there was a rise of 35% in debt related enquiries compared to the same period the previous year. Whilst interest rates did come down in December and February, they rose five times between August 2006 and July 2007, and in addition to higher mortgage repayments households have also had to face higher energy bills, increased food costs, and higher petrol prices, all of which have impacted on household finances.
One CAB official said: “It is a worrying trend that our bureaux are reporting very sharp increase in the number of mortgage arrears problems they are dealing with.” She went on to state: “The combination of big increases in household bills, especially fuel, and rising housing costs is putting additional pressure on people’s finances when they are already stretched to the limit.”
Recent additions:
- Avoid knocking the value of your home down further
- 25 year fixed rate mortgages – the experts’ thoughts
- Will additional cash help to ease mortgage markets?
- Regions of England and Wales see property prices slump
- Industry expert predicts 20% fall in house prices over two years
Related Posts
CAB still dealing with many debt enquiries
An increasing number of households are currently trying to cope with rising debt problems, as rising bills, high mortgage repayments, and restricted access to credit all take their toll on our finances. As a result of this an increasing number of people are now seeking advice with relation to their debts, and the Citizen’s Advice Bureau has reported a significant rise in the number of people that have been contacting the agency with regards to financial problems and debt worries.»
Financial crisis prompts more people to take debt advice
The effects of the global financial crisis are being reflected in the rising number of people seeking advice about their debts, according to officials from the Citizens Advice Bureau. The CAB claims that over the past year the level of enquiries relating to debt problems has soared by one third, and over the past few months alone, with finances getting increasingly tight for many households, there has been a sharp spike in the number of debt related enquiries.»
Many first time buyers have been seeking mortgage advice
It has been revealed in a recent industry report that many first time buyers have been seeking mortgage related advice in the current difficult financial climate, as they desperately try and get their foot onto the property ladder. »
Debt management enquiries to Payplan increase
An official from the debt management service Payplan has states that the level of debt management enquiries in the middle of January this year soared, as an increasing number of worried consumers faced up to the fact that they may struggle with their finances over the course of this year. »
Start of year sees insolvency levels rise
According to a recent report the first three months of this year have seen individual insolvency levels rise, with an increasing number of people entering into insolvency plans as a result of difficulties with household finances, which have been strained for millions over recent months. A combination of high mortgage repayments, rising bills, increased living costs, and tight credit conditions have all contributed to the rise in insolvencies according to industry professionals.»
Leave a comment
More from Debt News category
Ads and sponsors