One home repossessed every 11 seconds

Mortgage lenders are repossessing properties in the UK at a rate of one every 11 seconds, according to debt organisation Credit Action.

It also warns that more than 9,300 worried people are soliciting help from Citizen’s Advice every day as they battle to deal with their personal debts.

Total UK personal debt at the end of September 2009 reached almost £1.5 trillion.

Credit Action added that total lending in September 2009 increased by just £0.7bn compared to January, for example, when total lending grew by £8.4bn. Secured lending (mortgages and other loans secured on property) increased by £0.9bn in the month, while consumer credit lending fell by a net £0.3bn.

According to Credit Action, despite the fall in the growth rate of lending, just as many people rely on their credit cards to pay day-to-day bills as they have in previous years.

Chris Tapp, director of the charity, said:

"A lot of people are reliant upon being able to borrow on their credit cards to smooth out peaks and troughs in their income and in many unfortunate situations [they rely on cards] simply to buy essential living costs."

Tapp’s observations followed figures from the Bank of England, which reveal that credit card lending increased by £0.1 billion in September, while overall consumer borrowing increased by £0.7 billion.

Credit Action also said that total secured lending on dwellings at the end of September 2009 stood at £1,229bn.

Total consumer credit lending to individuals at the end of September 2009 was £229bn. Average household debt in the UK is £9,161 (excluding mortgages).Average household debt in the UK is £58,340 (including mortgages).