Debt levels rise

Consumers in the UK are putting themselves at risk of receiving county court judgements (CCJs) by increasing their levels of personal debt.

Figures from Credit Action show that debt levels rose by £117 billion in the 12 months leading to July 2007, while consumer credit lending grew by 5.3 per cent.

It paints a worrying picture for anyone wishing to get their first mortgage, as rising interest rates could potentially have a massive impact on their finances.

With debt levels rising, more people will be turning to a bad credit mortgage but they may also be in danger of getting into mortgage arrears.

Steve Baillie, head of loans at Sainsbury's Bank, said that there has been a change in attitude in recent times which has seen fewer people saving and more people borrowing.

"That has generally been the situation over the last few years," he said.

Mr Baillie went on to offer a ray of hope however, adding: "But more customers are saving now."

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