Debt Local: Consumers May Lose Own Homes "To Pay Off Bank Bailouts"

GBP787 billion hit to family wealth has created 800,000 Zombie households that can only survive thanks to cheap mortgages" reports DailyMail.co.uk
 
June 17, 2012 - PRLog -- Media reports suggest that British families are only just surviving the current financial storm, with each household in debt by £30,000 as a result of the banking crisis.

A report by the National Institute of Economic and Social Research (NIESR) has found that households in the UK are £787 billion worse off than in 2007 - the year before the 2008 banking crisis - and recovery to pre-crisis levels is not expected until 2019.

The banks cost taxpayers £1,000bn in bailouts and the report suggests that it is ordinary families who are bearing the brunt of repaying this money - many are barely surviving and are potentially in need of debt management help.

The term "zombie households" has been coined to describe families and homeowners who barely exist on their current income, but hang onto their homes because of low interest rates or at the discretion of their lender.

Debt Local is seeing more people from different walks of life in need of debt advice, including professionals in need of debt management solutions.

•   NIESR’s report suggests that middle income earners are shouldering much of the burden in the aftermath of the banking crisis, with many dipping into savings to survive.

•   The Financial Services Authority (FSA) has estimated that 800,000 of all mortgages have been in arrears once or homeowners have made a late payment - a situation known as forbearance.

•   House prices have also fallen an estimated 17% in the last four years, leaving many families in negative equity traps and unable to move or refinance.

•   Savers have also experienced the lowest interest rates for years and NIESR expects zero growth in the economy in 2012.

•   Elderly homeowners are also facing potential mortgage interest rate increases and dwindling pension funds, leaving many in need of debt advice.

Senior research fellow at NIESR Simon Kirby said:

"It has been a particularly painful period of time for many UK households and it looks like this is going to continue - homeowners have suffered particularly from this."

Debt Local offers debt management advice to anyone facing problems with debt through existing loans or credit card payments - and is urging homeowners to seek help sooner rather than later if they encounter problems in paying their mortgage through redundancy or interest rate increases.

Debt Local does not cold call or sends unsolicited emails and most of our customers come to us through recommendation or word of mouth.

Debt Local offers the best advice for the individual client’s situation - and will pass clients on to the appropriate agency if unable to provide the right solution ourselves.

Debt Local is anticipating seeing more and more homeowners in need of debt advice in the coming months and will endeavour to help as many homeowners as possible to hang onto their homes in the current financial crisis.


About Debt Local
Debt Local is a Birmingham-based debt management company which helps a wide cross-section of consumers manage their debt problems.

Many of Debt Local's customers are families struggling to manage debt and bring up their children.

Recent media reports have branded the debt management sector as self-interested and charging extortionate fees for their services.

These reports may deter families and homeowners who need specialist help in managing their debts from contacting reputable debt management firms.

Debt Local offers a FREE confidential initial consultation and debt advice, as well as the following services:

•   Debt Management
•   Individual Voluntary Arrangements
•   Debt Relief Orders
•   Bankruptcy
•   Debt Consolidation.

Contact Debt Local: Make a FREE CALL 0800 044 5659 or Send FREE Text "HELP" to 63333
http://www.debtlocal.co.uk/
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Zip:B4 6PH
Tags:Debt Advice, Debt Help, Debt Management
Industry:Financial
Location:Birmingham - West Midlands - England
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