Record CCJs increase bad credit history

An increasing number of people are likely find themselves with a bad credit history as a record number of county court judgements (CCJs) have been served this year.

In the first three months of 2007, some 296,841 CCJs were issued in England and Wales, which is an increase of 9.1 per cent on the same quarter last year.

Rising interest rates and inflation, as well as a growing willingness on the part of lenders to take cases to court, have contributed to the increase, according to the Registry Trust.

The figures showed that around 70 per cent of the total, or 247,187, were served as a result of non-payment on consumer debt loans - the highest figure for ten years.

"Credit is obviously here to stay," said Frances Walker from the Consumer Credit Counselling Service recently. "People have got to learn how to use credit properly."

Those issued with a CCJ who are still in need of more finances may end up turning to bad credit loans in order to be able to borrow money in spite of their bad credit history.

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