Debt advice could help you avoid repossession

20 October 2009

For people struggling with debt, the worst-case scenario is often repossession. This is more likely if you`re having problems with your mortgage or other secured debts, but even unsecured debts are a risk if they`re left unpaid. Repossession is rare, but it`s something you should be aware of.

That`s why debt advice is important. If you find yourself facing the prospect of repossession, you should contact a debt adviser at the earliest opportunity.

When does repossession become a reality?

If you`ve missed mortgage repayments (or other secured debt repayments), you may be at risk of repossession. However, it usually takes quite a long time (and a number of missed payments) for it to get to this stage.

You should have time to discuss your situation with your lender before you are faced with imminent repossession. You should also have time to speak with a debt adviser and find out if there are any debt solutions that could help.

Remember that repossession is not an ideal scenario for your lender any more than it is for you - in all probability, they would rather come to some kind of alternative agreement on how you can catch up with any arrears and stay on top of your ongoing payments.

In some cases, your lender may agree to a mortgage `repayment holiday` to allow you to get your finances back in order. However, this may be suitable only if your problems are short-term - if you`re likely to have the same problems after your repayment holiday, a different approach will probably be more appropriate.

If that`s the case with you, or if you simply can`t come to an agreement with your lender, it`s time to speak with a professional debt adviser about ways of improving your situation.

How can a debt adviser help?

If other debts are preventing you from meeting your mortgage commitments, a debt adviser may be able to recommend a debt solution that suits your needs. There are a range of debt solutions, each of which is designed to help people in different circumstances and with different kinds of debt.

Even if you don`t have any other debts and you are simply struggling with your mortgage, a debt adviser may be able to help you to improve your situation.

For more information on ways to clear your debts, call 0800 074 8639 today.

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