Debt problems are not forcing homeowners to downsize
Published: 13 August 2009
By MoneyhighStreet Staff Leave a Comment
Updated: 13 August 2009
Spiraling debt and reduced household incomes are not forcing Brits to downsize or change their lifestyles.
Although 56% of UK homeowners are suffering from increasing debts and money problems, according to research from MoneyExtra, more than a third of these people will not change their lifestyles.
It seems that keeping up appearances with neighbours, family and friends is important even though more of us are struggling to make ends meet.
The research shows that seven out of ten (66%) people admit they care what the neighbours think and two thirds (59%) of us believe others judge us by the size and value of our home.
Southerners are more reluctant to downsize or change their lifestyles than Northerners. Over half of Londoners (55%) view downsizing to pay debt as an indication of failure, while only 40 per cent of those living in the North-most parts of England share this opinion.
Richard Mason of Moneyextra.com said, “It’s absurd that struggling homeowners aren’t prepared to downsize simply to save face – these people need a wake up call! While downsizing might be considered taboo, the reality is that taking a step back can actually save up to £550 per month in mortgage payments.”
“The British ‘stiff upper lip’ is costing thousands of people their homes and I urge those facing debt arrears to downsize while they can. Surely it’s better to downsize on your own terms than face repossession and risk losing everything.”
Help is available for those whose debt problems are becoming unmanageable and it may be prudent to consider a debt management solution as soon as difficulties become apparent.