New figures released by national charity the Citizens Advice Bureau (CAB) reveal a substantial rise in the number of people seeking help with mortgage and secured loan arrears.
The report shows the CAB dealt with 35 per cent more mortgage and secured loan arrears matters over the last 12 months, which equates to 77,000 new enquiries.
Consumer solicitor, Andrew Leakey, of Stephensons Solicitors LLP, has been helping people get out of debt for 11 years.
He said: “The Citizens Advice Bureau report has highlighted the considerable effect debt is having on so many people lives. We, as well as the CAB, are seeing many more people come to us for help to deal with debt or repossession, and indeed some courts are delaying other proceedings just to cope with the sheer volume of repossession hearings.
“The situation is chronic, leaving thousands in fear of losing their homes. However, there is help available and the one thing I would say to those worrying about paying their mortgage is seek help at the earliest opportunity, whether that be us or the local CAB.”
Andrew believes many people could even be struggling to meet repayments on loans that they really do not have to pay at all.
He said: “A lot of debt that people have could be written off if they have their loan agreements looked at very carefully. We check hundreds of agreements each year free of charge for our clients, and a large percentage have discrepancies in them which ultimately means, in a lot of cases, the debt can actually be wiped out.
“However if the loan is legally binding, we can also negotiate with creditors on a clients behalf. We may be able to offer reduced payments, voluntary arrangements and, when appropriate, bankruptcy.
“We have helped thousands of people change their lives for the better by managing their finances in a better way.”
Stephensons has developed a new website, www.debtandrepossession.co.uk, where people can obtain free initial help. The firm also offers a free 30-minute consultation to check through credit agreements and assess the potential of challenging them. For more information on this, contact Andrew and his team through www.debtandrepossession.co.uk or call the free helpline on 0800 694 0189.