Free yourself from debt today.

DEBT HELP NOW
In 5 Minutes Or Less

CCJs increase, but is it just down to increased borrowing?

CCJ’s were issued to an incredible 573,321 people in 2005. ”One in 11 adults have County Court Judgements(CCJ’s) registered against them in England and Wales.”

The first reason that springs to mind as to why CCJs are increasing is because consumer borrowing has reached a record high. Debt has become much more widespread with almost 2 million people in the UK owing more than 10K. Half a million households are exeperiencing serious financial difficulties, which may result in them being issued with CCJs. This may be a reason for the increase in CCJs but there are other factors to consider.For Example:

Judgements can now be issued to those who fail to pay road tax so the DVLA policy may be a contributing factor to the increase. The Registy Trust records CCJs and they believe 18,000 judgements each month in 2005 came from the new DVLA policy.

Lenders are now resorting back to issuing CCJs in an effort to recover funds they have lent. This too could be a factor and a reason why CCJs have generally increased.

An article published on the This Is Money website revealed that your chance of receiving a CCJ can be increased depending on where you live. According to new reasearch by MyCall credit living in Yorkshire and The Midlands means you are more likely to be issued with a CCJ. Places within commuting distance of London have some of the lowest levels of CCJ registrations, which is surprising given that the cost of living near London is far greater than the rest of the UK. This may not have increased the overall CCJ registration but is a very interesting observation.

In conclusion there are many contributing factors as to why CCJs have increased and isn’t just because consumer borrowing is on the rise. The increase in CCjs is a growing concern and highlights the fact that people’s ability to service their debt is diminishing.

Free debt advice and solutions are available, even with a CCJ. Please contact Payplan today for instant advice.

Written by markw on April 21st, 2006

Filed Under  Debt News   |  Trackback  |   Leave a Comment

Leave a Comment