Decrease in arrears doesn’t mean anything

Although there were about 25,000 arrears problems in the second quarter of the current year, the Citizens Advice Bureau has reasons to believe there will be more arrears due to impending public sector cuts. The “calm before the storm” – this is how it describes the current situation.

According to the Council of Mortgage Lenders, the number of house repossessions has seen a slight decrease from 9,800 in the first quarter of 2010 to 9,400 in the second quarter, compared to 11,800 during the same period a year ago.

Gillian Guy, of the CAB, said that despite such good news they still worry that a large number of households are struggling not to fall behind with their loan repayments.

She added that homeowners need free debt advice because it was estimated by the CAB that due to free legal advice 85 per cent of immediate repossessions could be prevented.
 


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The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.