Debt likely to escalate

After the latest interest rate hike and another predicted to be on the way, mortgage-payers in Britain and Northern Ireland could face more debt judgements.

Following the spate of interest rate rises, solicitors in Britain and Northern Ireland have seen debt collectors reporting a 30 per cent rise in business this year.

This figure marks nearly a ten-year high in failure to repay mortgages, loans and bills.

"It's the fastest rate I've ever seen," said James Treacy, managing director of credit bureau BusinessPro.

"At the beginning of the year I predicted that there would be an increase of 20 per cent in the amount of judgments filed in the courts for 2007.

"Unfortunately, I was wrong and they are even higher than forecast. So far this year they are up 29 per cent in volumes and 41 per cent in value, and this trend looks likely to increase further in 2008."

BusinessPro also predicts that debt judgements may increase by 35 per cent more next year.

"The interest rate hikes are having a significant impact on people's ability to pay back loans," Mr Treacy explained.

Contact us for legal advice