The number of consumers with County Court Judgements registered against them for unpaid debts rocketed last year in yet another concerning indication of the UK's over-indebtedness.
A massive, 843,853 people had County Court Judgements registered against them, up by a third compared to last year and the second consecutive year that the figure has grown.
The Registry Trust, the organisation that tracks the figures on behalf of the Lord Chancellor's office claims that lenders are going to the courts much earlier than before to ensure they have a claim on the debtors property.
A County Court Judgement is the first step in a legal process that can culminate in bailiffs at your door, taking possession of goods to the value of the debt.
It is also the first step for a lender to take out a charging order, which converts any unsecured debt into a secured debt, enabling it to make a claim against the value of the borrower's property.
County Court Judgements are of course best avoided completely if at all possible, and for homeowners with a number of debts which are proving difficult to stay on top of and risk getting County Court Judgements as a result, an oft used and viable tool is to consolidate a number of smaller, unsecured loans by obtaining a debt consolidation loan utilising the equity in their property to secure a lower interest rate, which can serve to lower the monthly cost of servicing their debts, especially when combined with a longer repayment period.
County Court Judgements stays on a person's credit record for six years unless they pay it off in full within a month of it being issued.
The CCJ will remain on file, even if the debt is paid within the six years, but will be marked as 'satisfied'.
Even for homeowners who already have County Court Judgements, there are still solutions available to get their finances back on track.
There are a number of lenders who specialise in offering debt consolidation loans to homeowners with adverse credit, and who will lend to homeowners with not only County Court Judgements, but also mortgage arrears and even to homeowners in an IVA or bankruptcy.
The lenders have had their bad debt levels explode in the last few years as more and more borrowers utilise the less stringent bankruptcy laws and Individual Voluntary Arrangements.
The latest set of financial figures from the banks show that Barclays, Royal Bank of Scotland (owners of NatWest), HSBC and Lloyds TSB wrote off a collective £11.
6bn in customer bad debts last year.
Malcolm Hurlston, Registry Trust chairman said: 'Judgments are an important item in creditors' armoury, particularly for dealing with people who are 'won't pays' rather than 'can't pays' and the sharp rise indicates that it is creditor behaviour that is changing.
' He further added: 'Creditors are seeking judgements as the necessary first step to obtaining charging orders against debtors' properties, thus securing their share in any equity.
It is a further warning to homeowners who may have borrowed too heavily on top of rising interest rates and escalating house prices.
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A massive, 843,853 people had County Court Judgements registered against them, up by a third compared to last year and the second consecutive year that the figure has grown.
The Registry Trust, the organisation that tracks the figures on behalf of the Lord Chancellor's office claims that lenders are going to the courts much earlier than before to ensure they have a claim on the debtors property.
A County Court Judgement is the first step in a legal process that can culminate in bailiffs at your door, taking possession of goods to the value of the debt.
It is also the first step for a lender to take out a charging order, which converts any unsecured debt into a secured debt, enabling it to make a claim against the value of the borrower's property.
County Court Judgements are of course best avoided completely if at all possible, and for homeowners with a number of debts which are proving difficult to stay on top of and risk getting County Court Judgements as a result, an oft used and viable tool is to consolidate a number of smaller, unsecured loans by obtaining a debt consolidation loan utilising the equity in their property to secure a lower interest rate, which can serve to lower the monthly cost of servicing their debts, especially when combined with a longer repayment period.
County Court Judgements stays on a person's credit record for six years unless they pay it off in full within a month of it being issued.
The CCJ will remain on file, even if the debt is paid within the six years, but will be marked as 'satisfied'.
Even for homeowners who already have County Court Judgements, there are still solutions available to get their finances back on track.
There are a number of lenders who specialise in offering debt consolidation loans to homeowners with adverse credit, and who will lend to homeowners with not only County Court Judgements, but also mortgage arrears and even to homeowners in an IVA or bankruptcy.
The lenders have had their bad debt levels explode in the last few years as more and more borrowers utilise the less stringent bankruptcy laws and Individual Voluntary Arrangements.
The latest set of financial figures from the banks show that Barclays, Royal Bank of Scotland (owners of NatWest), HSBC and Lloyds TSB wrote off a collective £11.
6bn in customer bad debts last year.
Malcolm Hurlston, Registry Trust chairman said: 'Judgments are an important item in creditors' armoury, particularly for dealing with people who are 'won't pays' rather than 'can't pays' and the sharp rise indicates that it is creditor behaviour that is changing.
' He further added: 'Creditors are seeking judgements as the necessary first step to obtaining charging orders against debtors' properties, thus securing their share in any equity.
It is a further warning to homeowners who may have borrowed too heavily on top of rising interest rates and escalating house prices.
'