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Government warns about rising credit card debt Debt - the 12-month view Amount of `bad debt` written off reaches 16-year high Deeper into debt: middle-class poverty Debt taken on by individuals increased in January Debt Relief Order (DRO) rules may be changed Overdrafts: five million Britons `permanently` in debt Mortgage lending drops to decade low The cost of debt falls Two thirds hope to have cleared mortgage debt by 50 40% of people approaching retirement `saddled with debt` Repossession `may be best` for homeowners struggling with debt Bankruptcies in Scotland - the worst may be yet to come Good news for people with energy debts US: new law provides debt-free date More debt taken on than repaid in December Savings rise as consumers pay down debt Household debt `could trigger another downturn` More families could fall into debt with energy companies Recession ends

New debt law could increase repossessions

19/09/2008

A new law making it easier for banks and other lenders to take action against people struggling with debt could result in a sharp increase in repossessions.

The law will give creditors the potential to convert unsecured debts into secured debts, putting expensive assets such as the borrower’s home at risk of repossession.

The law is a change to the Tribunals, Courts and Enforcement Act 2007, which has been passed into law but is currently not in effect.

The Lord Chancellor is expected to set a minimum debt – likely to be around £1,000 – under which creditors are not able to reclaim debts in this way.

A spokesperson for Debt Advisers Direct said: "This should act as a stark warning to people in debt to take action now.

"There are a number of debt solutions available for a range of different situations, and we advise people in debt not to ignore it. A debt consolidation loan or debt management plan, for example, can help people get out of difficult situations without the stress of court action."

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Debt Advisers Direct offer a wide range of debt help and advice. For more information, contact one of our expert debt advisers now.

Government warns about rising credit card debt 05/03/2010 - The latest figures from the Bank of England (BoE) have Debt - the 12-month view 04/03/2010 - In January, UK citizens - between them - borrowed £500 Amount of `bad debt` written off reaches 16-year high 03/03/2010 - The latest figures from the Bank of England (BoE) suggest Deeper into debt: middle-class poverty 02/03/2010 - The recession has also affected a lot of people with