If you’re facing an uncertain future and wish to stop a repossession order – don’t use your credit card. As the New Year came and went new figures were published that showed a frightening (though understandable) tendency for home owners using their credit cards as a means of keeping up with mortgage repayments.
The homeless charitable organisation Shelter found the news to be alarming enough to issue a warning that went along the lines of: don’t use alternative forms of credit as a means of supporting yourself through financial difficulty.
In a nutshell, the use of credit cards is doomed from the outset. By using a different type of available credit – you are staving off the inevitable. If you’re already experiencing financial difficulties then using a credit card will only exacerbate the issue somewhere down the line.
Most credit card arrangements require that you pay the money back at a far higher interest rate than your mortgage lenders will be charging – so it’s pure math that several months of paying your mortgage with your MasterCard is going to increase your outgoings at an exponential growth rate.
The facts – mostly related to the financial situation and/or repossessions in Yorkshire and the Yorkshire region in general:
- More than 287,000 individuals across the region may be using their credit cards to pay their mortgage or rent
- Of around 2 million people asked (nationwide) during the survey – of those that said ‘yes – they had been using their credit card/s’ – 7% of that figure were from the Yorkshire region
- In the November of 2009, the same question brought back a 4% figure that were doing the same in Yorkshire
- Across the nation, the predicted figure for this year is that it’s almost a 50% increase on the previous year (2010)
As you can see – the figures are frightening.
If you’re one of the above and you can’t see no way round keeping up with your mortgage repayments – are you certain that you haven’t explored all other options that may be available to you?
You can turn to Shelter, the Citizens Advice Bureau, your local Government to check if you’re eligible for their Mortgage Rescue program. Then there’s the mortgage lenders themselves. They are prepared to listen because the bottom line is this: they don’t want your home.
No matter how much it may feel like it, the last thing any bank or large mortgage lender needs is an ever increasing portfolio of homes that they need to deal with. Banks are not property developers – they’re banks.
They’re in the business of making money by way of lending, holding and distributing the green stuff. That’s what they do – that’s what they are. If they end up repossessing a home they are then responsible for it – and they don’t want to be.
Why do you think that there are so many bank owned properties appearing at house auction venues across the UK? They don’t have the time to maintain them, attend to all the minutiae that is part and parcel of home ownership.
It really is in your mortgage lenders best interests to keep your home in your possession – and that’s something worth thinking about. Yes – you can and do come up against jobs-worth employees that make you feel as you you’re a voice in a million but – that’s not the majority.
As an example the Yorkshire Bank has a fantastic dedicated debt solutions department that’s so far doing a great job of talking with its customers as a means of finding agreeable solutions to spiralling debt and the potential of a future house repossession.
The HSBC work with customers on a client-by-client basis – and do their best to find a way forward. Barclays also use a tailored approach and the Halifax Bank – the UK’s biggest mortgage lenders – are the same.
The fact is this: if you need help, ask for it. Don’t wait until the carthorse has well and truly bolted. Using your credit card to pay of your mortgage is simply borrowing from Peter to pay Paul. It’s a fool’s errand and will only result in the worst case scenario – unless you’re incredibly lucky.
To stop house repossession in Yorkshire – or any other region across the UK – pick up the ‘phone and make the call now. You have plenty of avenues available to you providing you don’t bury your head in the sand.
The problem with head burying is this … when you lift your head back up again your world will have tilted too far the wrong way. Don’t lose your home – act now.