Do not let last year's debt give you a New Year hangover
For some, the New Year represents a fresh start. For others it simply brings even more worries over their stretched finances.Historically, the New Year tends to bring a surge of people seeking help with the debt that they have built up. When finances come under pressure from many different sources it is easy to lose track of mortgage or rent payments.Head of Conveyancing and Director of Farnworth Rose solicitors, Helen Robinson, advises those struggling with their mortgage and rent payments to always speak to their lender or landlord.
'They can help by perhaps offering payment holidays or interest only payments for a couple of months to help you get back on your feet.â?'Mortgage and rent payments should always be prioritised. Failure to keep up with mortgage payments or rent, could lead to your home being repossessed.â?'In addition, you should always make sure that you keep up to date with your Council tax and TV licence payments. If you do not, you could find yourself before the courts and in some circumstances facing a custodial sentence.â?
You should ensure that your mortgage provider or landlord is aware of your financial situation. If they are and you need to ask them to reconsider the payments you are making, they may well look upon your request more favourably. Banks and landlords do not want to see your home repossessed, you should always take action and keep them informed.The same applies to utility companies. There are payment plans that energy companies can set up that will help you work towards paying any arrears.
Energy bills
Many landlords install meters in their properties as tenants often find their energy bills easier to manage on a meter. Where a meter is installed you are always aware of what you are spending and due to prepayment, no arrears can accrue.It is important to know exactly where you stand and what you should prioritise regarding debts and bills. Once you have the situation in hand, you are well on the road to resolving it.You should remember to track of any correspondence between you and your lender. Keep notes of telephone calls, and copies of letters and emails.Helen Robinson states, 'Don't put your head in the sand and hope it all goes away.â?
'Debt is not something to feel ashamed of. If you can face up to it and resolve the situation in the correct way, you will feel more confident going forwards and you will be able to prevent finding yourself in the same position in the future.â?