Credit and Debt Advice

Today there is now a mass of people struggling to pay their mortgage, loans and credit card bills due to the recklessness of money lenders in previous years. There is no worse feeling than not being able to stay in your own home and finding a way to do this should be the first thing on your list. There are many schemes on offer, some good such as the mortgage rescue scheme and some that need careful consideration such as the sale and rent back scheme.

The sale and rent back scheme scheme sounds great on paper as you get to sell your house but still remain living there as a tenant on a fixed term agreement. While this may allow you to pay off your mortgage and other debts there are some risks attached. Some of the risks are listed below.

1: You may still have to leave your home after the fixed term tenancy agreement.

2: Your rent could go up during the tenancy agreement.

3: You could still be evicted from the property if you fall behind on the rent payments.

4: The amount you get for your home will be much less than if you sold it privately.

5: If the person or company buying the house gets into financial difficulty then the property may still be repossessed and you will probably have to move out anyway.

6: If you sell your house at a discounted price then you may affect your eligibility to bankruptcy and other forms of insolvency.

This scheme should be one of your last resorts as you could end up in a worse financial situation than you originally started in. The mortgage rescue scheme is probably one of the best around but there are certain eligibility criteria, so not everybody may qualify for this.