Debt Local: Consumers may lose own homes “to pay off bank bailouts”

Document Sample
Debt Local: Consumers may lose own homes “to pay off bank bailouts” Powered By Docstoc

                     BANK BAILOUTS”

UK 17 June, 2012
For Immediate Release

"£787 billion hit to family wealth has created 800,000 Zombie
households that can only survive thanks to cheap mortgages" reports

Media reports suggest that British families are only just surviving the current
financial storm, with each household in debt by £30,000 as a result of the
banking crisis.

A report by the National Institute of Economic and Social Research (NIESR)
has found that households in the UK are £787 billion worse off than in 2007 –
the year before the 2008 banking crisis – and recovery to pre-crisis levels is
not expected until 2019.

The banks cost taxpayers £1,000bn in bailouts and the report suggests that it
is ordinary families who are bearing the brunt of repaying this money – many
are barely surviving and are potentially in need of debt management help.

The term “zombie households” has been coined to describe families and
homeowners who barely exist on their current income, but hang onto their
homes because of low interest rates or at the discretion of their lender.

Debt Local is seeing more people from different walks of life in need of debt
advice, including professionals in need of debt management solutions.

      NIESR’s report suggests that middle income earners are shouldering
       much of the burden in the aftermath of the banking crisis, with many
       dipping into savings to survive.

      The Financial Services Authority (FSA) has estimated that 800,000 of
       all mortgages have been in arrears once or homeowners have made a
       late payment – a situation known as forbearance.
      House prices have also fallen an estimated 17% in the last four years,
       leaving many families in negative equity traps and unable to move or

      Savers have also experienced the lowest interest rates for years and
       NIESR expects zero growth in the economy in 2012.
      Elderly homeowners are also facing potential mortgage interest rate
       increases and dwindling pension funds, leaving many in need of debt

Senior research fellow at NIESR Simon Kirby said:

“It has been a particularly painful period of time for many UK households and
it looks like this is going to continue – homeowners have suffered particularly
from this.”

Debt Local offers debt management advice to anyone facing problems with
debt through existing loans or credit card payments – and is urging
homeowners to seek help sooner rather than later if they encounter problems
in paying their mortgage through redundancy or interest rate increases.

Debt Local does not cold call or send unsolicited emails and most of our
customers come to us through recommendation or word of mouth.

Debt Local offers the best advice for the individual client’s situation – and will
pass clients on to the appropriate agency if unable to provide the right solution

Debt Local is anticipating seeing more and more homeowners in need of
debt advice in the coming months and will endeavour to help as many
homeowners as possible to hang onto their homes in the current financial

About Debt Local
Debt Local is a Birmingham-based debt management company which helps
a wide cross-section of consumers manage their debt problems.

Many of Debt Local’s customers are families struggling to manage debt and
bring up their children.

Recent media reports have branded the debt management sector as self-
interested and charging extortionate fees for their services.

These reports may deter families and homeowners who need specialist help
in managing their debts from contacting reputable debt management firms.

Debt Local offers a FREE confidential initial consultation and debt
advice, as well as the following services:
      Debt Management
      Individual Voluntary Arrangements
      Debt Relief Orders
      Bankruptcy
      Debt Consolidation.

Debt Local: CALL 0800 044 5659 or text HELP to 63333

Shared By:
Description: "�787 billion hit to family wealth has created 800,000 Zombie households that can only survive thanks to cheap mortgages" reports