Indebted homeowners 'should not be lulled into false sense of security'
Indebted homeowners 'should not be lulled into false sense of security'
- Thursday, 23 April 2009Homeowners struggling with high levels of debt should not be led into a false sense of security by a "well-intentioned" government initiative.
Richard Mason of Moneyextra.com asserted that homeowners must "look beyond the hype" surrounding the Homeowner Mortgage Support (HMS) scheme.
According to HM Treasury, the HMS programme provides a "bridge" for homeowners who are suffering a temporary lapse in income from which they expect to recover at a later date.
Mr Mason explained although the programme could offer a number of benefits in the short-term, these could be offset by its long-term effects.
"The government ... is in danger of lulling borrowers into a false sense of security and consequently delaying them from taking positive steps to resolve their financial difficulties," Mr Mason stated.
He added that homeowners should approach "cure-all" schemes cautiously, as their short-term benefits could come at the price of long-term savings.
Furthermore, those who are in debt "with no end in sight" should discuss their options with a financial adviser, he said.

Recent Debt Management Plan News
56% of Brits have no life insurance which could leave family with debt problems
Wed, 04 May 2011More than half of UK adults currently have no life insurance cover, which could mean their loved ones are left with
debt problems when they die...
Brits thinking about retirement advised to seek debt advice
Tue, 03 May 2011Consumers considering their retirement options have been advised to seek professional advice, as they may end up with
debt problems in the future...
Brits planning to attend a wedding should start saving to avoid debt problems
Thu, 28 Apr 2011Consumers concerned about getting into
credit card debt to pay to attend a wedding may want to use their savings instead...
Couples planning their big day can avoid debt problems by negotiating a cheap wedding
Wed, 27 Apr 2011Couples-to-be worried about needing
debt advice in the future after paying for a wedding can ensure they avoid accruing
debt problems by negotiating a cheap wedding...