Everyone is aware of the mounting problems with debt in this country. It's pretty much taken as standard that we assume quite large quantities of debt without much of a second thought. Getting credit gets you what you want now without having to wait – it's been described as the oil in the wheels of the economy.



According to Credit Action, the average household debt in the UK including mortgages is well over £50,000 – that's a significant figure. While most people manage their debt comfortably, a significant minority – and we're talking hundreds of thousands here – struggle to make payments or miss payments.

Once you miss payments on any debt you can start to face really serious problems, especially if you miss mortgage payments. Let's consider some of the problems that can arise:

“If I just miss one payment, I'll be able to catch up later”

The mortgage payment is usually the largest single outgoing in most households. When debt mounts up it's tempting to use that month's mortgage to try and get in the clear and then settle with the mortgage lender later.

One missed payment is enough to make you down as having mortgage arrears – a tough lender could conceivably begin proceedings against you to recover the debt. Unless you settle the debt immediately, the missed payment continues to roll on month after month marking you down as being in arrears for several months.

The bottom line is that to pay off your mortgage arrears you will need to make not one mortgage payment but two – for most people facing problems with debt that proves impossible.

One way to end the problem immediately is to act quickly – an instant remortgage with a specialist lender can allow you to free up equity, settle your debts and get back on track before your mortgage arrears is recorded as a CCJ on your credit rating.

“I can't afford to pay my mortgage, I'll just hope that things get better”

Many people who face a slide into unmanageable debt face an impossible task of paying their mortgage even though the repayment costs of their debt leaves them with nothing to live on. At this point they really have very few options – they need to act quickly to resolve their debt issues or face losing their home.

One of the quickest ways to do that – and often overlooked is that homeowners may have a lot of equity in their home, and even with interest rates creeping up the growth in property remains at around 10% a year on average.

By arranging an immediate remortgage of your home you can take the cash locked up in your home and help you get things on an even keel.

“I've had a CCJ issued – I've messed up my credit rating anyway so there's no point in doing anything about it.”

If things have progressed and you have been issued with a CCJ or even a possession order then urgent action is required. However, the psychology of debt is such that many people just want to bury their heads in the sand and not face what's going on – it's understandable: with creditors constantly chasing you it can be a very stressful situation.

However, if you think all is lost because your credit rating is blown, think again. Take immediate action by arranging a remortgage with a specialist lender and not only could you save your house from repossession but you could also be well on your way to repairing any damage done to you credit rating.