Mortgages & Debt ~ Debt Managements and Consolidation

Being in debt is scary enough, but when you have a property there can be added pressure on you. Today I want to talk about mortgages, and debt and how they come together.

Your mortgage will most probably be the biggest debt you will ever have. You will have your repayments set out for you at the beginning and you will know what interest you will pay towards this. Depending on the type of mortgage, your interest will either be fixed at a set rate for a certain length of time or will be variable but linked more or less to Bank base rates.

As well as being the biggest debt, it will often also involve the largest single, regular outgoing in your household budget and should always be paid as there are serious consequences.

In order to manage your debt you need to start by prioritising what needs to be paid. If you have a mortgage then your monthly payment will always the first thing that you need to pay. After that you need to pay any secured loans or hire purchase agreements. Any other debts will then come after.

I know that this might seem like I am stating the obvious but from my past experience when it comes to paying your debts it is usually ?whoever shouts the loudest? gets your money. For example, if you have a credit card or a loan and you miss a payment they will always contact you straight away and demand money from you. They will also add interest and charges on straight away for missing a payment of sending a late payment. Whereas, if you miss a mortgage payment it can take them a couple of months to process the missed payment and to take the necessary action.

By doing this you may avoid the initial hassle of not missing a credit card payment but by missing a mortgage payment you face more serious consequences.? You may think that you can make up the missed mortgage payment, but in reality it is often harder to catch up once you are in arrears with payments than you might at first think, this is because you will not only have your usual monthly expenditure to pay, including your usual mortgage payments, you will also have your creditor payments that you need to keep making as well as extra to your mortgage to cover the arrears

If you are in arrears with your mortgage then the best thing for you to do is contact your mortgage company straight away and reach an early, workable agreement with your lender. If you have fallen into arrears because you are struggling with your debts then seek free impartial advice to help with setting up a plan with your creditors.
If you are struggling with debts then please call Payplan on 0800 2802816.

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