Abacus Daily Debt News

Predicted repossession rise to increase debt concerns?

People's debt concerns may be heightened if the next year sees a rise in repossessions.

According to the Consumer Credit Counselling Service (CCCS), an escalation in such action is likely to take place in the upcoming 12 months.

The charity warned a housing market recovery might result in an increase in repossessions as lenders begin to enforce orders that they have postponed over the last year.

Malcolm Hurlston, CCCS chairman, commented: "Lenders have shown leniency towards debtors during the recession by not enforcing suspended possessions orders."

He warned such action was partly determined by the markets and added some organisations are reluctant to allow debtors to switch to interest-only mortgages as a short-term solution - which would give people a little more breathing space while searching for a solution.

The recent Economic and Labour Market Review from the Office for National Statistics found the UK has witnessed an increase in the number of workless households.

By Amy White