More credit card debt secured against homes
More credit card debt secured against homes
Wednesday 2nd July 2008
James Falla of Thomas Charles said that a sea change in the firms' approach to debt has been noted in recent months with more of them "applying to take charges over property".
He explained: "A credit card in general is unsecured debt - if you don't pay it, it's not secured against anything. But what credit companies can do if you own a property and you’re not repaying the debt that you owe in the proper manner is apply to the court to secure it against your home.
"What that will then mean is that people in debt difficulties may start seeing increased pressure in situations where they're looking at repossessions."
News of lenders stepping up moves to recover credit card debt comes after a study conducted by MoneyExpert.com found that 27 per cent of people have increased their debt levels in the last three months.
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