Debt Enforcement Clogs Courts, ‘Low interest rates will rise again’
Main Headline Of The Day : ‘Enforcement Of Debts Clogs Courts – The judges order payment and the debtors disobey. The plaintiffs make use of a new law and return to the court. It is for this reason that there are close to 400 enforcement actions regarding debts on Madeira. And that is just in one month’. The secondary action by creditors leads to the enforcement of payment through seizure of property, once a debtor has failed to meet the deadline set by the courts for payment of a debt. The problem is growing month on month, and the courts are struggling to manage the additional workload. Among the most common reasons for court action are the non payment of mortgage arrears, car loans, condominium fees, and mobile telephone bills. Funchal has the biggest problem (270 cases), whilst the next closest is Santa Cruz (34).
‘Low interest rates will rise again – There are families saving about €2500 per year on mortgage payments, but at the end of the crisis, the rate rises’. The basis of home purchase loan interest charges, Euribor, was at 5.178% 6 months ago, but has now fallen to 1.668%. A family, with a €100,000 mortgage over 30 years, will be saving €204 a month from last October’s payment.
