Are the debt collectors coming?

  • Story by: Gemma Westacott
  • Magazine: FTAdviser
  • Published Tuesday , July 01, 2008

Chatting around the barbecue at the weekend I discovered that two of my friends are in a right state as a result of the tightening economy. For them, rather than being something that is merely threatened by doom mongering headlines, the credit crunch is all too real.

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The problem is that they were two of the numerous investors who hoped that property development would make them millions. They also went down the route of an incredibly high loan-to-value ratio in order to achieve it - not quite 100 per cent, but close enough.

Unsurprisingly, now that the bottom has fallen out of the property/mortgage market, they are finding themselves in an increasingly tight spot.

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