One property is repossessed every 11 minutes, study shows

03/11/2009

New research has revealed that a British property is repossessed once every 11 minutes.

A study by financial charity Credit Action showed that over 9,000 worried consumers are turning to Citizen's Advice on a daily basis as they seek out financial help.

The figures revealed that total lending during September grew by £0.7 billion when compared with £8.4 billion worth of growth seen in January of this year.

Secured lending was up by £0.9 billion during the month while lending surrounding consumer credit fell by £0.3 billion.

Chris Tapp. director of Credit Action, said that many consumers are now relying on their credit cards for everyday purchases.

"A lot of people are reliant upon being able to borrow on their credit cards to smooth out peaks and troughs in their income and in many unfortunate situations [they rely on cards] simply to [cover] essential living costs."

Further findings from the charity's research showed that the total personal debt for the UK had reached £1,459 billion by the end of September.

Kevin Still, EuroDebt directors, said: "There are a lot of mixed messages in the press at the moment, one minute we are out of recession and consumer confidence is rising and the next there is going to be another blip and we will revert into recession with house prices dragging along the bottom for years to come.

"What is clear is that many consumers are suffering with financial management and sustaining disposable income at an acceptable level that allows them to pay their unsecured creditors. Despite measures put in place by the regulators, many homes are still at risk and consumers feel they have to use credit cards to make ends meet."

He added: "There will continue to be a significant demand for non-borrowing debt solutions, like Debt Management Plans and IVAs. The lending code issued this week sets out the standards for banks, building societies and credit card providers to follow, especially in respect to people in financial difficulty."

Tags; Housing Debt and Bills,

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