Home Owner Loan And Priority Debts Increase
Although the first half of this year saw many individuals starting to manage their loans and other debts in a better manner and reduce their loan arrears and outstanding debt balances, housing loan problems have seen a significant increase over the course of the last three months.
The news comes from Citizens Advice, who say that they have seen an increase of around 14 per cent over the last three months in the number of cases of home owner loan arrears and rent arrears, creating fears of increasing levels of homelessness in the UK.
There has also been a large increase in priority debts, as many individuals have been struggling to be able to pay their bills on things like gas, electric and water bills. Citizens Advice has seen an increase of 20 per cent in water bill arrears and debts in recent months.
However, although home owner loan and utility debts and arrears are increasing, personal debts on things such as personal loans and credit cards have actually seen a decrease in arrears cases, as more and more individuals are making a serious effort to reduce their level of personal loan debt.
Earlier this week, the Building Societies Association (BSA) outlined new plans which are designed to help people struggling with their home owner loan or mortgage to remain in their property and avoid the possibility of repossession wherever possible. With the latest news from Citizens Advice on home owner loan problems, the changes can’t come soon enough.
Gillian Guy at the Citizens Advice Bureaux commented on the figures, she said “This big increase in the number of homelessness enquiries we are seeing is very worrying. The planned cuts could tip tens of thousands more individuals and families into rent arrears, putting them at real risk of homelessness.”
