Shares in the US have suffered following a nervous response to announcements by home lenders. Companies exposed to the home mortgage industry have all seen their share prices drop as investors become more and more concerned after several large lending companies have reported that they are feeling the results of higher interest rates.

Rising debt levels coupled with the increased interest rates have hit many mortgage payers hard enough that they are unable to keep up with their payments. The interest rate rises together with high levels of debt have led to late and missed payments and seem to be the cause of the highest numbers of repossesion actions for 37 years.

The US housing market is now suffering with house prices falling after several years of rapidly rising.

Yes, it’s another country and things are done somewhat differently there but this should be a warning to anyone who has convinced themselves that house prices can only go up and also to be wary of getting too heavily into debt.

It could happen here so how would you cope if it did?  Keeping your debt levels at manageable levels means you will be able to weather the storm if it happens. Nobody wants to lose their home so make sure it doesn’t happen to you.

Money Magic: Seven Simple Steps to True Financial Freedom (Quick Reads)

The Consumer Credit Counselling Service (CCCS) reports that higher inflation and interest rates will hit homeowners pockets hard in 2007 causing many to struggle with their debts. The interest rate rises since last August will have added an average cost of about £500 to householders’ annual bills and though the interest rate has been held at current rates today projections are that there will be further rises in the future.

Meanwhile, though the Halifax is reporting continuing shortages of suitable houses continuing the increase in the value of property the Royal Institute of Chartered Surveyors said last week that there is a reduction in enquiries for the first time for a couple of years.
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Money Magic: Seven Simple Steps to True Financial Freedom (Quick Reads)

A lot of people have reclaimed their bank charges following the advice of websites like penaltycharges. That site alone has helped people reclaim over £1.5 MILLION. There are a lot of other sites that have been around or recently appeared wh are also assisting people to reclaim.

So far, no bank has defended it’s actions in court and they have all paid up before the court date arrives. Some have, however, retaliated against customers who have reclaimed their bank charges by closing their accounts. This is obvious to anybody as retaliatiry action though the banks claim it is “due to a breakdown of the relationship” or somesuch twaddle.

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Money Magic: Seven Simple Steps to True Financial Freedom (Quick Reads)