Clients on the edge need peace of mind
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JAMES WATSON: HEAD OF SALES AND MARKETING, PAYMENTSHIELD
A £300 monthly decline in income could see many consumers in the 35 to 44 age group lose the roof over their heads.
This shocking statistic is revealed in research commissioned by Callcredit Information Group. The research, carried out by YouGov, shows that more than one in eight adults in this age bracket deliberately inflate their income when applying for credit to help them secure a higher limit.
Also, apparently more than a million distressed borrowers have applied for credit cards with interest rates as high as 60%.
It seems incredible but this is what happens when you get a population that is uneducated about personal finance and raised in a climate of easy debt and instant gratification. Perhaps people have taken their cue from a government that has borrowed heavily to avoid catastrophe.
Unfortunately, these borrowers do not have AAA credit ratings or access to the fiscal controls the chancellor has.
A crash in property prices, a rise in unemployment or a hike in interest rates could see many consumers miss mortgage payments and lose their homes.
If ever there was a time to be selling mortgage payment protection insurance this is it. With households more indebted than in past recessions many families are living on a financial precipice. They need the peace of mind MPPI provides.
Any broker prepared to provide such security will reap rewards in terms of client retention and commission for years to come.
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