| As interest rates increase, more and more | | | | remortgaging as a tool by which to free |
| people are looking to their credit cards to | | | | themselves from debt, consolidate all monthly |
| support them during times of financial | | | | payments, and also reverse the negative |
| difficulty. However, credit card consumers | | | | effects on their credit ratings. A mortgage |
| are discovering that debt breeds debt as they | | | | broker specialist in remortgaging with bad |
| struggle to meet repayments. In the first | | | | credit can arrange a mortgage product that |
| half of this year, over 4 million repayments | | | | best suits your repayment ability. These |
| were missed, resulting in penalty charges | | | | repayment schemes are designed to reflect the |
| that exceeded £50,000,000. The | | | | financial circumstances of a given homeowner, |
| consequences of these missed payments are | | | | sometimes with designated 'repayment |
| more far-reaching than some realise, with | | | | holidays'. This allows funds resting in |
| consumer credit ratings being affected | | | | bricks and mortar to be used directly to pay |
| negatively for up to three years. In turn, | | | | off mounting debts - such as those from |
| these consumers then find it harder to borrow | | | | missed credit card repayments - and gradually |
| or take loans and can pay much higher rates | | | | reverse the spiral of debt and also repair |
| of interest, as creditors view them as | | | | the damage done to a credit rating by bad |
| high-risk borrowers. Unfortunately this | | | | money management. It would seem that the |
| system, which was designed to offer the | | | | credit card may have a serious rival in terms |
| consumer a way in which to support their | | | | of using funds to support a lack of immediate |
| lifestyles beyond their immediate means, can, | | | | finances. |
| if not carefully managed, have directly the | | | | |
| opposite effect. Many of those unable to meet | | | | Tom Mead is a qualified mortgage advisor |
| repayments and penalty charges are now faced | | | | specialising in Self Cert Mortgages |
| with a spiral of debt with no obvious escape | | | | editorial, on how best to arrange a self |
| route. However there are those who use | | | | certification mortgage. |