Debt. Can we avoid it?
For the majority of us, the answer would be a big fat NO. Unless we happen to call Bill Gates of Richard Branson daddy! Even the simplest most frugal folk would have a debt in the guise of a home mortgage. According to recent reports, last year saw a steep rise in the number of people that had debt problems, and are at risk of bankruptcies and losing their homes. Are these people BIG spenders? The answer may surprise you. These are average, hard-working people who don't over-pay, nor are shopaholics and do not own bigger houses than they could. So why are these debt conscious homeowners going bankrupt? Rising costs of living is a key factor. Read here for more...
In addition, there are these great big mortgage moguls that try to push for 130% mortgages, 40 year mortgages, no down payment mortgages, and anything else they could think of to make a bigger buck (UK). The unsuspecting consumer gets suck into a deeper debt than he can swallow.
This is why all consumers are advised to ask for debt help when in the slightest doubt; as the swing from 'tight' to 'struggling' can happen so fast, even if you've enjoyed a pay raise, found better employment, or reduced your debts.
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