An increasing number of borrowers are being faced with county court judgements (CCJs) over unpaid debts . Nearly 830,000 CCJs were passed against borrowers in England and Wales in 2008, as borrowers struggle to repay their bills and loans as the credit crunch takes its toll. That figure rose by 4 per cent from 2007, which saw less than 800,000 CCJs passed. The figures from the Registry Trust did, however, reveal that the total value of these CCJs dropped slightly, from £3 billion in 2007 to £2.9 billion last year.
The consequences of these CCJs are equally worrying, with people likely to struggle to secure credit for a mortgage or personal loan in the current climate if they have a poor credit history . Furthermore, following the revelation that a rising number of affluent people are facing debt difficulties, it is feared that those unable to pay the outstanding amount could be repossessed and lose their homes.
Malcolm Hurlston, chairman of the Consumer Credit Counselling Service, said, ‘As over-indebtedness becomes a problem for the more affluent, people who come to us are more likely to have mortgages, and homeowners owe on average 83 per cent more than renters. It is a trend we expect to intensify in the coming months as the recession deepens.’
Unpaid Debts Result in Increase in CCJs
Tue, 24 Mar 2009
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