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Obtaining credit has been easy and the rise of the housing market has allowed people to borrow even more money. Maybe your secured loan is half your mortgage but it costs 3 times the amount each month!
Debt needs to be repaid with interest. Credit is so easily available, people who have modest or low income can obtain credit and eventually fall into a debt trap. When their monthly repayments become too high, they fend off creditors with more loans or more credit cards, hoping that as long as the immediate situation is remedied, tomorrow would take care of itself.
Don’t let yourself become bankrupt. Just think what that will do to your future credit record
The only way to tackle debt is to pay it off and take drastic actions to reduce your monthly outgoings. If you have equity in your property, you should sell as quickly as possible and use the cash to pay off as many debts as possible. You can rent the property back as a tenant at an affordable monthly rent, and if you like, buy the property back later on.
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