Personal debt leading to home repossessions in Manchester

Some 10,000 home repossessions were carried out in Greater Manchester last year as many people's personal debt problems spiralled out of control.

Figures from the Ministry of Justice show that 13,336 claims were taken to the region's county courts by building societies, banks and landlords, the Manchester Evening News reports.  

Of those claims, just over 3,000 were unsuccessful, with the majority of people leaving their properties voluntarily and without the need for court-appointed bailiffs to forcibly remove them. 

These statistics demonstrate the danger a rise in the cost of living can have when coupled with stagnant pay increases, as many householders simply do not have enough disposable income to make ends meet. 

According to various housing charities, recent changes to the benefits system – including the 'bedroom tax' – are only going to make the situation worse as social tenants will see a reduction in the amount of money they receive every month. 

Amanda Croome from the Booth Centre – an organisation that helps the homeless – told the paper: "We are seeing an increase in people who were tenants and have been repossessed. Most of those we deal with had been evicted by housing associations."

Latest figures from the Council of Mortgage Lenders show that 7,700 mortgages were taken into possession in the second quarter of 2013, highlighting the extent of the problem. On top of this, a further 157,000 mortgages were in arrears during this time period. 

If people want to make sure they do not default on their housing payments they need to bring their financial situation under control. One way of doing so is to seek out debt management help.

For example, an individual voluntary arrangement can help householders to become debt free in five years and also reduce a person's monthly repayments to a much more manageable sum. 

By Joe White