When it comes to debt management, many people rely on their homes as a source of equity, but how does the current credit crunch impact on managing debt?
Paying off debt has never been so crucial for so many. Debt management is a modern necessity and it's crucial that consumers seek expert financial help. If you are a homeowner, you could have access to equity that can help you find debt management solutions.
The increased demand for debt management solutions
In 2008, debt management will dominate conversations as a result of the global credit crunch sparked by the American sub-prime housing crisis in 2007. Consumer credit cards and easy credit in the form of secured and unsecured loans have been liberally supplied by lenders in the past decade – but they now have to be paid back. The credit crunch has sent warning signals to lenders, who are now reigning in their lending criteria and tightening their financial belts. But the global credit crunch has also sent shockwaves through the property market. So can homeowners rely on remortgaging their home or releasing equity for their debt management plans?
Property prices raise concerns for debt management strategies
Releasing equity or remortgaging is crucial for many homeowners who are seeking a debt management strategy. Often this is the only source of finance many of us have. But as prices are set to tumble, should we be worried? The severity of the economic slowdown is now clear. The Bank of England has announced it will help banks deal with the credit crunch and economists have declared that the housing bubble is set to burst. Debt management is now a priority for us as a nation and as individuals.
Seek professional debt management help
It's true that homeowners are facing a slump. A string of estate agents, lenders and official bodies have all recorded house price falls in the last three months. Many homeowners are also facing bigger bills as their fixed rates end this year. Debt management therefore should take into account that we cannot always rely on our homes to be a nest egg we can turn to in times of crisis. Economists are predicting 2008 will be a difficult year, which is why if you're struggling with debt now, it's crucial you seek professional advice and make sure you have a debt management plan in place. Debt can quickly spiral out of control, but it is possible to ride through the financial turmoil and the property slump if you have a good debt management plan in place.
It currently costs an average of £220,111 for a home in the UK, nine times above the average annual earnings. It's no wonder then that our homes can be the cause of so much debt, but they can also help us get out of debt with a good debt management scheme.
Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0800 031 9802 or fill in our online enquiry form.