More home repossessions 'likely in the near future'

Consumers might face a number of financial problems in the near future, an expert believes, with more bankruptcies and repossessions potentially on the horizon.

According to the UK Insolvency Helpline's spokesperson Ian Boden-Smyth, things are likely to get worse for some people in the coming months.

He commented: "I think there are going to be more repossessions, I think interest rates are going to go up and there will be a rise in IVAs [individual voluntary arrangements] and bankruptcy."

Temporary measures such as mortgage payment holidays might not prove beneficial to the economy in the longer term, the expert believes.

As a result, credit card debt is one issue that needs to be addressed, Mr Boden-Smyth went on to suggest.

Earlier this month, the Consumer Credit Counselling Service's chairman Malcolm Hurlston outlined his belief that the debt solutions that are available to UK consumers should be reviewed in detail.

Posted by Tom Burroughs.