One property is repossessed every 11 minutes

03/11/2009

New figures have shown that mortgage lenders are repossessing properties at a rate of one every 11.5 minutes.

Credit Action claims that the pressures of the recession are beginning to really bite for some people, with 9,300 people contacting Citizens Advice everyday to help cope with their personal debt situation? Take our Debt Calculator test today!'>personal debts.

The organisation adds that the total level of UK personal debt reached nearly £1.5 trillion in September.

Total lending, meanwhile, rose by just 0.7 billion, with secured lending increasing by 0.9 billion and consumer credit lending falling by 0.3 billion.

Credit Action claims that many people are still reliant on their credit cards, although many have curbed extravagant spending and use them instead to meet day-to-day living costs.

According to debt solutions firm EuroDebt, 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 many consumers feel they have to use credit cards to make ends meet.

There will continue to be a significant demand for non-borrowing debt solutions, like Debt Management Plan'>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

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