Brits 'consider cutting back' on mortgage repayments

Date:Tuesday 3rd February 2009
Author: Max Freedman

Some 31 per cent of Brits are considering making cutbacks on essential payments such as mortgages, loans and credit cards due to stretched budgets, new research from Fairinvestment.co.uk has indicated.

A total of four per cent of those who are struggling financially said the monthly payment they would make cutbacks on would be their mortgage.

The financial website asserted that this could be one reason why repossessions are becoming more common in the UK.

Fairinvestment.co.uk chartered financial planner Sharon Bratley said that it is wiser to make cutbacks elsewhere, as failing to make a mortgage or credit card payment could work out to be more expensive in the long term.

She said: "It is vital that if people have to cut back, they do so in a way that doesn't actually cost them anything more, for example, you should keep paying your mortgage and credit card bills to ensure that you don't have any further charges applied."

Fool.co.uk's David Kuo said last week that total consumer debt currently stands at £1.4 trillion and suggested that cutting personal taxes could have an immediate benefit for Brits, who can choose to save, spend or invest the money.