Published in on Wednesday, March 25 2009 by Ideal Debt Solutions
The Registry Trust, which is responsible for compiling county court judgments (commonly known as CCJs) figures from courts in both England and Wales, has released statistics which show that more and more borrowers are ending up in court after failing to keep up with bills and loan repayments. Many consumers who have been feeling the pinch after the credit crunch began in earnest last year have been unable to pay back borrowed money and the Registry Trust has revealed that over 827,000 of these individuals have been taken to court as a result. In 2007, this figure stood at just over 796,000.
The increase seen last year represents a 4 per cent rise, although, if you’re desperately looking for a silver lining to this ever-growing debt cloud, the total value of CCJs decreased over the year. In 2007, the total value stood at £3 billion. The figures for 2008 show that this total value fell to £2.9 billion. This reduction is not significant enough to bring a smile back to the faces of those worried about the increasing debt problem that the UK is experiencing at the moment.
CCJs are serious occurrences and should not be taken lightly. Those homeowners who have CCJs lodged against them could end up losing their houses if they continue to fail to repay the debts that they owe to lenders. CCJs can cause other issues as well and the impact that they can have upon an individual’s credit record can be disastrous. Financial experts have intensified such worries by stating that although homeowners are currently struggling to keep up with everyday household bills, the situation is likely to get worse over the coming year. Malcolm Hurlston, the chairman of the Consumer Credit Counselling Service, stated that “the perfect storm may have arrived but we have yet to reach its epicentre”.
For help dealing with debt and advice on what to do if you have been handed a CCJ, try approaching an expert finance company for objective assistance.