CCJs 'soar as consumer debt increases'
Published On 30 March 2007
The number of county court judgments (CCJs) for the non-payment of consumer debt, after people took out things like debt relief products, increased significantly in 2006, according to new figures.Data published by the Registry Trust revealed that the number of CCJs increased by 33 per cent in 2006 compared to the previous year.
Overall, consumer judgments increased to 843, 853 in 2006 - from 635,222 in 2005.
"Despite record levels of unsecured borrowing and over-indebtedness, judgments have declined steadily from their peak in the early 1990s," Registry Trust chairman, Malcolm Hurlston, said to creditman.biz.
"It might seem puzzling, therefore, that judgments are increasing at precisely the time that growth in outstanding unsecured debt is levelling off - it was a marginal one percent in 2006."
According to the Metro, the Conservative shadow chancellor, George Osborne, commented on the findings, saying: "With earnings failing to keep up with prices, more and more people in Britain are struggling with personal debt."
"Worryingly, the prospects for 2007 look even worse."
According to recent figures, personal debt in the UK reached £1.3 trillion earlier this year.
