Partner Article

Over 50% more homeowners seeking debt help

The security of owning a house and finally getting on the property ladder is a dream come true for many people. But committing to a mortgage isn’t always plain sailing - especially for those trying to keep up with credit card, loan and other debt repayments at the same time.

This is a situation that debt advice and solutions provider Debt Advisory Centre (DAC), who wrote this article, say almost 40% of their clients have been in.

Research they carried out highlights a 52% increase in the percentage of their clients who are homeowners.

In 2008 - before the recession hit - 25% of Debt Advisory Centre’s clients were homeowners, compared with 38% in 2013.

Much of this increase could be down to the fact that people simply over-committed when times were good. In fact, 44% of their clients say that over-commitment is the main reason they’re facing debt problems today.

Many homeowners were confident they could afford a property and manage their credit card, loan and other repayments pre-recession - but now find themselves struggling.

Other reasons people gave for being in debt were the increased cost of living, changes in employment and relationship breakdowns.

Melanie Taylor from Debt Advisory Centre said: “Being in debt is worrying for many people, but this worry is often multiplied for people who own their own home.

“Thoughts of ‘what if’ can cause anxiety among homeowners, with the possibility of losing their home at the root of their anxiety - if their situation doesn’t improve.

“For many people, there’s nothing worse than worrying about financial problems. So if you’re struggling to meet your repayments I’d recommend talking to an expert sooner rather than later.”

This was posted in Bdaily's Members' News section by Debt Advisory Centre .