Debt management offers “short-term” solution

Posted 2008-04-27

The number of court orders seeking to secure personal debt, such as loans, against peoples properties has increased by 42 per cent in a year, new figures have shown.

Statistics from the Ministry of Justice (MoJ) reveal that the number of applications for charging orders, whereby a persons debt is paid once their property has been sold, applications filed by banks in 2007 was 131,644.

Nathan Gladwell, from Chiltern Debt Management, believes consumer spending habits need to be reviewed and suggested that debt management solutions can offer some relief to those with serious debts.

"People struggling with their finances need to readjust their spending to more realistic levels and be open to alternative options. Options like debt management can offer a valuable short-term solution whilst debts are brought under control, and they ensure that debts are prioritised," he said.

The increase in the number of charging orders is predicted to grow further as banks look to secure lent funds.

Chilterns monthly debt monitor recently found that the level of debt per person in the UK fell by £400 from the beginning of the year.

Leave a Reply