Debt in the UK

Interestingly we are now beginning to show all the signs of the over expansion of the economy a few years back.

Things got a little heated and it was always clear that this would have a knock on effect. Mortgage arrears have now begun to increase for the first time with 105,990 people failing to make payments. Repossessions are also on the increase with over 10,000 homes being taken away from their owners. The final straw is the amount of county court judgements (CCJs) being issued. In 2005 there was a total of 573,231 CCJs issued. This will generally make it much more difficult for the individuals to solve their own scenarios but there is a solution. I notice bankruptcies are now at an all time high with 30% more people going bankrupt than the year before.

So what are the potential solutions? With debt breaking through the £1 trillion mark in May 2006 (£9.3bn was borrowed in May 2006 alone to buy homes) consumers need to be savvier with their borrowing. 9.1m people were refused credit in 2005 and that number will soar if the consumer does not take the appropriate steps. The situation has got so far out of control that today over 1 million pensioners are in debt.