Redundancy may not mean repossession ~ Debt Managements and Consolidation

Falling behind on mortgage repayments can result in repossession, however, a free debt advice company has reminded struggling homeowners that home seizure is not imminent. It urges them to seek advice as early as possible.

With household bills hitting a three-year high homeowners are under increasing pressure to keep on top of their outgoings, add redundancy into the equation and consumers can quickly drop into debt. ‘Will I lose my house?’ is the most frequently asked question received by Payplan’s helpline from people who have been made redundant. The free debt advice and solutions company is advising those who have been made redundant to get financial help as quickly as possible, before their situation spirals out of control.Diane Watson, Payplan’s specialist advice team leader, told the Telegraph: “Redundancy often happens totally out of the blue and comes as a huge shock. It is devastating and turns people’s lives upside down. But it isn’t the end of the world, even if getting another job isn’t that easy. “There are plenty of options available so while the job search goes on, the family finances and any potential debt issues are being managed.”The firm help over 100,000 people every year with their finances, and reassure consumers that being made redundant does not indefinitely result in home repossession even if temporary defaults in debt repayments incur. John Fairhurst, Payplan’s Managing Director added: “If you’re out of work and worried that you’re going to creep into debt or have already started to do so, don’t leave it too late to seek advice. You could find the situation you’re currently in isn’t nearly as bleak as you first imagine.” Housing Minister Grant Shapps told Property Talk Live: “Today’s figures underline how the recession has brought difficult times for lots of people. I urge anyone who thinks they may be at risk of losing their home to take action immediately. There is help available, and repossession should only ever be the very last resort. No one in financial difficulty should be embarrassed to seek help if they need it and worried homeowners should speak to their mortgage lender immediately. “There are challenges ahead for homeowners in 2011 – so the most important thing that Government can do is to continue our efforts to tackle the record deficit. By doing this we can avoid the need for rapid increases in interest rates, and keep the pressure off homeowners facing financial hardship.”
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