The recent statistics released by Registry Trust paint a concerning picture: County Court Judgments (CCJs) in England and Wales have seen a significant rise in the final quarter of 2023. This follows a year of ongoing increases, raising questions about the financial strain many individuals and businesses are facing.
What are CCJs?
A County Court Judgment, or CCJ, is a formal court order issued against someone who owes money and hasn’t repaid it after proceedings were issued. It can have a serious impact on your credit score and ability to access financial products like loans or mortgages.
Why the Increase?
The reasons behind the CCJ surge are likely complex and multifaceted. Here are some potential contributing factors:
- Cost of Living Crisis: The rising cost of essentials like food and energy is putting a significant strain on household budgets. This may lead to individuals falling behind on bills and credit card repayments.
- Business Pressures: Businesses are also facing rising costs, impacting their ability to meet financial obligations like rent and supplier payments. This could explain the increase in CCJs issued against businesses.
- Post-Pandemic Repercussions: The economic fallout from the COVID-19 pandemic may still be lingering, with some individuals and businesses struggling to recover financially.
What Does This Mean for You?
Whether you’re a consumer or business owner, it’s important to be aware of the potential consequences of CCJs. Here are some steps you can take:
- Prioritise Debt Management: If you’re struggling with debt, prioritise managing it effectively. Create a budget, explore consolidation options, and contact creditors to discuss repayment plans.
- Debt Advice: Don’t hesitate to seek free debt advice from reputable organisations like Citizens Advice or StepChange. They can help you explore solutions and develop a sustainable repayment plan.
- Maintain Communication: Open communication with creditors is key. If you foresee difficulty meeting payments, reach out proactively to discuss options and negotiate repayment terms.
Looking Ahead:
The increase in CCJs highlights the financial challenges faced by many in the UK. By taking proactive steps to manage debt and seeking support when needed, individuals and businesses can navigate this difficult period and protect their financial well-being.
It’s important to note: This blog post is not intended to be financial advice. Always consult with a qualified financial professional before making any financial decisions. If you are an actor facing a debt recovery situation, Debt-Claims Solicitors can help. To find out more about how we can assist you, contact us today or call us on 02475 461 042.
