Staggering debt figures

Staggering debt figures

What a tough year 2018 was! Question is, will 2019 be any easier? “With the staggering debt figures, my predictions are; its going to get tougher”.

Natasha Parrott – Founder of Consumer Money Worries Ltd

The Money Charity have concluded that 3,055 County Court Judgements were issued every day in England and Wales in 2018. The average county court judgement debt amount was £1,431.00.

The worrying factor here is that the average house hold credit card debt alone in December 2018 was £2,634.00. So, what happens if something happens that is completely out of your control? What if you’re made redundant and can’t afford to pay your creditor commitments and your household bills?

The number of redundancies in 2018 is potentially one reason for the high number of County Court Judgements being issued.

The staggering figures of 989 redundancies alone between October – December gives us a little glimpse of what 2019 has in store for us. With the staggering debt figures soaring, should we expect more redundancies in 2019?

Consequences of getting a County Court Judgement

Once a creditor has secured a County Court Judgement you will have an opportunity to secure an arrangement in place. The key is to stick to this arrangement.

Most people fall into the trap of offering what they think the creditor will want, as a pose to what is actually affordable.

Completing a realistic household Income and expenditure is essential, this is something that we can support you with.

What will happen if you don’t stick to the agreement?

There are a number of actions that the creditor can then take:

  1. Issue an enforcement officer
  2. Attachment of earnings
  3. Attachment of income (such as benefits)
  4. Apply for a charging order (secure the debt against a mortgaged property)
  5. Issue a Statutory Demand (issue bankruptcy proceedings)

How can you stop a County Court Judgement?

  1. You can object to owing the money and contest it
  2. Pay the debt in full

Staggering debt figures

Maintaining your priority outgoings is paramount such as rent and mortgage. The consequences to not maintaining these outgoings are potentially repossession / eviction.

There were 313 Landlord possession claims and 255 Landlord possession orders made every day in 2018. Are we seeing a rise in homelessness?

12 properties were repossessed every day in quarter 4 of 2018, in other terms, 1 every 2 hours. Scary isn’t it!

There is help out there

Unfortunately, we are unable to avoid or predict a redundancy but what we can do is plan for the future. We need to individually work on making these staggering debt figures more sustainable and less of a risk.

If you are feeling the pinch and finding it difficult to maintain both your creditor commitments and your household bills, we are here: