Monday 17th of August 2009
Britons may be risking bankruptcy because of a refusal to downsize their properties, new research has revealed.
Rather than making lifestyle changes in order to clear debt, many homeowners admit they would rather continue to struggle than downsize their house, the survey for Moneyextra.com found.
Even though failing to keep up with financial commitments could lead to repossession, 66 per cent of people admit they care what their neighbours would think of them moving into a smaller home.
Furthermore, 59 per cent of individuals think they are judged by the size and value of their property, the poll found.
"The British stiff upper lip is costing thousands of people their homes and I urge those facing debt arrears to downsize while they can," said Richard Mason of Moneyextra.com.
As well as considering moving into a smaller property, an individual voluntary arrangement (IVA) could prevent the need for Britons to give up their home.
Rather than going bankrupt, entering into an IVA could be an option for people with significant levels of debt which is owed to three or more creditors.
By Neil Burton
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Swap credit cards for IVA advice
