Consumers need to be savvy about mortgages to prevent debt problems
Consumers need to be savvy about mortgages to prevent debt problems
- Friday, 9 July 2010Mortgages could cause
debt problems if the consumer is unaware of how much they are spending on repayments each month.
Mary Graham, regional manager for the Consumer Financial Education Body, states that people need to be in control of their mortgages in order to avoid "unfortunate surprises".
She said: "It is in everybody's interest to be in the driving seat. It is all about being in control – this way we can feel much happier about things."
Ms Graham advised consumers to stay on top of their mortgage by looking at their key facts document and shopping around for the best deal six months before the current deal is due to finish.
The Consumer Financial Education Body released figures on July 6th, which showed that one in ten people are unsure about how much they spend on mortgage repayments each month.
Furthermore, almost a fifth did not know when their current deal ended and three quarters had no idea what impact an increase in interest rates would have on their finances. This could cause
debt problems.

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