Two Thirds of Mortgage Holders Hope to Repay Debts Before They Reach 50

Two Thirds of Mortgage Holders Hope to Repay Debts Before They Reach 50

According to a recent study conducted by The Co-operative Bank Mortgages, almost two thirds (62%) of mortgage holders expect to have repaid their debt by the time they reach 50.

The study further revealed that over a half of respondents would go on more holidays if they were able to pay off their mortgage. About one in three (31%) respondents felt that they would pay more money into their retirement funds.

Many people have been making overpayments on their mortgage. At least 31% said that they were doing this to cut down the amount of time they were in debt to their mortgage provider.

Further studies have revealed that people definitely are taking initiatives to repay their mortgage and reduce their debts. One such way is by taking in a lodger. According to a report published in the Telegraph, the number of households looking to take in a lodger to help clear their debts increased by 27% during the first 14 days of 2010.

Although officially the economy is recovering from one of the worst ever recessions, people in bad debt situation are still finding it difficult to make ends meet. Indeed, a survey found that 65% of respondents were 'overstretched financially.' The cost of Christmas 2009 had also forced them to take action to clear their debt. One just has to look at the number of figures for bankruptcy to realize realise how serious the situation is.

Indeed, the number of bankruptcies makes for sober reading, particularly if you look at the number for individual insolvencies-134,142, which is and increase of 26% from last year. The official records also put IVA to 47,641 and DROs to 11,831.

The people made unemployed or redundant last year are still feeling the effects of the meltdown and lenders and institutions taking a hard line with individuals is not helping.

Given the uncertainties of the present economic times, it is little wonder then people are in a hurry to pay off their debts, and primarily their housing loans. Taking in a lodger is definitely a good idea to supplement your income and increase the amount of your monthly repayment.

However, this is just one of the options available. If you are in a difficult financial situation, either because of too many loans, or because you have lost your job and are unable to pay your debts, you can seek debt advice to find out if you qualify for an IVA Individual Voluntary Arrangement or a Debt Management Plan and to understand how you can pay off your mortgage and regain financial stability.

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