The UK Debt Problem Is About To Erupt – And The Banks Are Worried.
Should you be ?
Well maybe, especially if you have tenants who may have a lot of debt.
Not only do debt affect the person in debt but also the people around them: their family, their spouse, their children and sometimes, their landlord. A person in debt is going to be very cautious about their money and would try to push back having to pay them as long as they possibly can, otherwise, they wouldn’t be in debt.
Try and help them, before their problem becomes your problem and the rent isn’t paid.
But what about you ?
Debt is most often than not seen as a huge weight on one's shoulder because as they say, money makes the world go round and as much as people rationalize and deny it, we can't overlook that most of our actions, motives and goals are driven financially.
If you have credit card debt or loans then maybe so - now is the time to start paying that lot down.
We call it 'bad debt' (as opposed to good debt which are things like mortgages etc that helps put money INTO your pocket).
Too much bad debt can slow you down, make you sluggish and hold you back.
Pay it down as fast as possible.
Then take a look at your income to debt ratio - and see if you're comfortable with it.