| Financial
Services > Mortgages
> Information
> Repayment
Debts
Due
to unforeseen difficulties
such as redundancy,
debt
problems can
get worse. Mortgage
debt is a priority
because should you
fail to make payments
then you could lose
your home.
Some banks and societies run in-house debt counselling services,
that can help prioritise your debts, and advise you on any benefits
you may be entitled to.
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| Mortgage Complaints - If you have a complaint against your mortgage lender you should make a formal complaint, if your complaint is still not dealt with appropriately then you can take your complaint to the Building Societies Ombudsman, who will investigate the situation, should the Ombudsman agree with you, you could be paid compensation of up to £100,000.
As mentioned in other areas of this site, the quicker you pay off your debts the less money you spend on the interest charged by the lender. |
It therefore pays to put as much money towards your debts each
month as you can. Every pound counts, so it is important to have
a detailed understanding of your monthly financial situation.
If you can you should always try to pay more to the lender that
is charging you the most as that is the one you want to pay of
first.
In order to pay as much as you can off your debts each month,
you need to establish your exact income and outgoings each month.
A simple, but very useful task.
Firstly, calculate your monthly income. Add up all money you receive
each month after tax, including salary, income support, benefits, child benefit and any
thing else you may get.
Secondly, calculate your monthly outgoings. Add up all your essential
outgoings, excluding your debts. This will include the monthly
mortgage/rent, gas, electricity, water rates, council tax, TV
license, telephone, car insurance, household insurance, food this
does not including eating any luxury items.
You can now calculate your net disposable income by deducting
your essential monthly outgoings from your monthly income. This
is the sum of money you have available each month to put towards
paying off your debts. If you have multiple debts, make those
with the highest interest rates the first priority and concentrate
on paying off one at a time.
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