What if I can’t pay my mortgage because I’ve lost my job?
If you have a mortgage, most large banks are introducing ‘payment holidays’. These will mean you will receive a temporary break from paying part or all of your monthly payment… But all this means is that they increase the total amount you owe so at some point you will need to pay it all back. If you’re having issues paying part or all of your mortgage payments, you must contact your bank or lender straight away. Major credit card companies now are offering to remove any fees that are the result of missed payments, however, the debt is still there and will continue to build up.
What debt do I pay first?
With so many bills to be paid each month, it can become difficult to know what you need to pay first. How do you tell a priority bill from a non-priority debt? What makes a mortgage payment more important than a credit card payment?
According to the debt advice charity Stepchange, if you are struggling to pay your household bills, you must prioritise which are most important and that you can afford to pay.
Stepchange say certain bills are classed as priorities because the consequences of not paying them are greater than the consequences of not paying others. For example, if you don’t pay your rent or your mortgage you could lose your home. You must always pay these before your other debts. Some of the types of debts identified by the charity that are deemed high priority.
Where do I go to for advice on what I can or can’t do?
Review your household income and expenditure (keeping a roof over your head should be the main priority) and get debt help as early as possible by contacting Property Debt NI.
If you find that you are not getting anywhere with your bank, or that you are worried about the impact that Corona Virus will have on your life, property and finances… we are here to help. With over 20 years’ experience of property debt mediation and helping people with debt, the team at property debt NI are ready to support you during this time of uncertainty.
To keep up to date with all the latest news and to chat live with our team, use the Property Debt NI App or call us on 028 9600 9621 today for your free consultation.