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BUYER BEWARE - MORTGAGES CAN LEAD TO DEBT PROBLEMS
First time buyers may find themselves vulnerable to problems of over-indebtedness according to Consumer Credit Counselling Service (CCCS), the UK's leading debt charity.
Commenting on a report published today (March 22) about first time buyers, CCCS says that debt levels among home owners and buyers are almost twice as high as among those living in rented accommodation.
According to CCCS chairman, Malcolm Hurlston, those on low to middle incomes
are particularly at risk. He says:
"People, especially the young, often feel compelled to get "a foot on the
ladder" but they need to take account of their circumstances and be sure they
can afford to meet repayments as well as any other commitments and still have
enough money to live. Going broke is never a good experience for anyone".
"A good starting point is to aim to keep all financial commitments, ie mortgage
repayments plus unsecured loans and credit, below 50 per cent of net monthly
income, otherwise you may find yourself struggling and finish up in debt."
Tips for managing money and preparing a monthly budget are available at
www.cccs.co.uk or contact CCCS helpines on 0800 138 1111 between 8am and 8pm,
Monday to Friday.
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