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Solution Mortgages news on bad credit remortgages, poor credit remortgages and for people with arrears & ccj’s. Remortgage news with regards to the adverse credit market and people with sub prime credit.

Wednesday, July 2, 2008

Warning on credit cards

The credit crunch is making things more difficult for all of us but is ever more important to cut back on needless spending and service your current debts. Lenders are concerned about the funds they have lent being repaid and will take action if they are not.

Many people who are in debt are finding themselves under increasing pressure as credit card companies are applying for a charge over peoples properties. This means that a once unsecured debt is now secured against the individuals property.

Many people have reached the point where they can no longer afford to meet their monthly outgoings and are applying for credit cards for a form of finance.

This is a dangerous tactic and is likely to lead to people not being able to repay the money they have borrowed.

As a result of this credit card companies have been applying to the courts to have a secured charge over the individuals property to cover the debt that is owed. This means that if the individual either sells the property or remortgages the property the credit card company will have to be repaid.

This is adding increased pressure to people and could also potentially increase the number of repossessions, as previously unsecured lenders push for the property to be sold to repay the debt.

If you are in serious debt you should consult the Citizens Advice Bureau in the first instance.

If you have any questions on this article, please feel free to contact Solution Mortgages on 0845 123 1260.