Families £250,000 in debt should not face repossession

David Cameron has highlighted the need to protect families against the increasingly real danger of repossession.

Revealing a package of measures to help individuals struggling to keep up with bills, Mr Cameron stated that families who have debts of less than £250,000 should not be threatened by bailiffs trying to seize their homes and belongings.

The Conservatives have promised to reverse Government proposals that make it easier for lenders to gain a stake in borrowers’ homes, and ensure that home owners with less than £250,000 owed on credit cards or unsecured loans will not face repossession.

Last year almost 100,000 home owners were given charging orders, compared to less than 10,000 in 2000. Plans to allow lenders to take out charging orders on debts as low as £1,000 have also been heavily criticised by the Citizens Advice Bureau, although Justice Secretary, Jack Straw, has insisted that these measures have not yet come into force.

Mr Cameron said: “In this recession, lots of people are going to get into terrible trouble. There are problems at the moment with people who get their homes repossessed not because they are not keeping up payments on their mortgage, but because they have credit card bills or other unsecured loan bills. That is wrong.”

Article sourced from www.debtmanagementtoday.co.uk 11th November 2008