Every day is a greater number of families are being affected by the current economic situation in Spain. Certainly, the problem comes in the wake of the sustained increase in market values of homes, creating a housing bubble that was always weigh heavily on the economy. With the credit boom of the last five years we could see as the buyer of an apartment, apply for a mortgage that covered the purchase price, the transaction costs and even extra money for buying furniture. Not only are we satisfied with that, but we allow ourselves to two credit cards, a loan to buy the car and personal loan for the reform of the floor. It is common in the Spanish mortgage market that mortgages are engaged using the Euribor reference. 5 years ago this index was in the order of 2%. A mortgage contract at this time had a very low financial burden.
If people borrowed on the assumption that each year your house was worth more, it was expected that if the EURIBOR, suffered an increase for whatever reason, the impact on the family budget would be devastating. And that is exactly what has been happening. Here its evolution: JANUARY 2005 JANUARY 2004 2.216 2.312 JANUARY & n bsp; 2006 2.833 4.064 July 20 JANUARY JANUARY 2008 & nbs p; 4.498 has been increased by 100% since 2004. The effect on the letter of the mortgage is paid every year more and more. yQue done in this situation? Obviously if we are up to their necks in debt and interest rates climbed to the stratosphere, it is very possible that we failed to pay one or more of the loans. In this case, what we can do is: Negotiate with the bank the conditions of the mortgage debts Reunify benefit plan mortgage moratorium ICO Filing for bankruptcy bankruptcy law applying in any case, we must take action sooner the better and try by all means to resolve the situation through the four options we have. The important thing is we win in quality of life and maintain control of our finances. Edgar Roquett Financial Advisor If you want to delve into herein visit: immediate solution to family indebtedness.