Repossessions set to increase

Permalink: Repossessions set to increase
by Kay Murchie

According to the charity, Money Advice Trust, the amount of homeowners having their properties repossessed will reach 123 each day by the end of the year. It is currently over 70 each day.

Furthermore, in the first quarter of the year, the number of insolvencies in England and Wales was 25,264, while first-time buyers have on average £20,300 of debt not secured on their property.

This is just some of the findings revealed by the charity who are investigating debt in the UK and the assistance available to people who are in debt.

The charity has launched a comprehensive database and has gathered its information from Citizens Advice and other free debt advice services including National Debtline, the Consumer Credit Counselling Service and Credit Action.

The Trust found that 90% of those who had received advice found it helped prevent them getting further into debt.

Commenting on the database, chief executive of the Trust, Joanna Elson, said it will assist people in the UK to cut their debt by enabling the Government to understand levels of debt and helping advice agencies support those in debt.

A recent report from the homeless charity, Shelter, revealed that in the last year, over 4 million families have paid their mortgage or rent on their credit card.

The report, called Breaking Point, reveals the extraordinary lengths some are going to during the current economic climate.

The report established that one in six is worried about losing their home after defaulting on mortgage payments while almost 3 million families have had to borrow money from friends or family, or take out a personal loan, to pay the mortgage or the rent.