Debt Management and Negative Equity Worry for Thousands

According to a report on the BBC, the debt management problems of thousands of homeowners could be set to worsen amidst reports that the threat of negative equity is likely to affect large numbers who recently secured mortgages. To find out more visit http://www.debtmanagementtips.co.uk/

The financial picture in the UK is particularly bleak and it is of little surprise that Gordon Brown’s popularity has sunk to new lows as reports filter through that some 23,200 people who took out mortgages in the year to 31^st March are faced with the very real possibility of negative equity. This is likely to result in significant debt management problems for the thousands of affected homeowners as the values of their properties plummet and they continue to struggle to service their mortgage repayments. The housing market crash is, of course, just one aspect of the debt management predicament that the UK faces. The myriad of financial fallouts from the credit crunch is creating carnage for the debt management plans of homeowners and consumers alike.

Debt Management - Housing Disparities

The debt management nightmare that results from negative equity is as a result of the plummeting house prices meaning that the value of a house is no longer equal to the amount taken out in a mortgage. According to the report on the BBC, the negative equity problem is most troublesome for those who cannot afford their mortgage repayments as it leaves them in a very problematic debt management situation. Speaking to the BBC, Michael Saunders of Citigroup, sounded an ominous warning and stated, “House prices are down 6% in just the last five months, and the worst of the credit crisis - all that still lies ahead.” This news will certainly be unwelcome to those who are already suffering from debt management problems.

Debt Management - Tackling the Problem

In terms of what can be done to tackle debt management problems, increasing numbers of homeowners and consumers are discovering that schemes such as a debt consolidation loan can help them significantly when it comes to getting their finances back on track. One of the primary reasons people experience debt problems is the difficulty they have keeping track of multiple arrears which is why many will seek professional debt management advice from financial experts during 2008.