According to a report by lenders, in the first three months of 2010, the number of homes repossessed in the UK fell by approximately 7.5%.  The report shows that the number of UK homes repossessed dropped from 10,600 in the last three months of 2009 to 9,800 during the first quarter of 2010.

The key reason that the figures are falling are low interest rates.  The low interest is allowing people to stave off the threat of repossession due to lower monthly mortgage bills.   The figures also show that the proportion of home owners getting into payment difficulties fell during the first three months of the year.

Another report also shows figures on the mortgage rescue scheme.  The scheme allows people to sell their home to a local housing association and stay in it as a tenant, or to sell a part of the house in a shared equity deal to reduce monthly mortgage payments. Over 600 households have been helped by the mortgage rescue scheme in England.  When it was launched under the Labour government in early 2009, ministers claimed that up to 6,000 households could be assisted.

On another note, recent figures from the Ministry of Justice outlined that the number of potential repossessions in both England and Wales was also falling. The number of possession actions stood at just over 18 thousand in the first three months 2010. This was 24% down on the same period last year and 8% lower than the previous quarter.

If you are having trouble paying your mortgage you should not ignore the fact.  You should try and negotiate with your mortgage lender.  Normally the Mortgage Lender will write to you and  advise what you have to do to repay your mortgage arrears. Depending on your lender they will ask you to catch up over the next six months or so.

When you receive a letter like this the reaction is often despair, anger and frustration but no matter how you feel the one thing you must do is speak to your mortgage lender.  Its easy, in the short term, to hide away but you have to remember that this is not a long term solution.  You must also keep in mind that it is not in the mortgage lenders best interest to repossess the house, but if you don’t communicate then they will have little option. Give them a phone call or write to them and advise them of your current situation.  You will then have time to think and research all your possible options.

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In the UK today, one of the most worrying types of debt is credit card. On average interest rates on credit cards stand at approximately 17 – 18%.  This means, if you only make the minimum payment each month, your credit card debt will will soon grow very quickly.  On top of that there are charges and fees if you miss, or are late with payments.

If your based in the UK and find yourself unable to make more than the minimum payment each month you should take action and try not to ignore the situation. One of the options available is a debt management plan.  This type of plan is an informal agreement with your lenders that results in your repayments will be brought down to a more affordable level.  You will pay back as much as you can afford towards your debts on a monthly basis. Your lenders aren`t obliged to accept your offer of a debt management plan, but if they realise its the most realistic way for them to get back their money, they will usually choose to proceed.

Your lenders may also agree to a freeze the interest and fees, which stops your debts from getting bigger while you`re paying them back. As a result your debts can be cleared quicker than if you were still paying interest.  You should be aware that repaying a debt more slowly will affect your credit rating, whether or not you enter a debt management plan.

If you have unmanageable credit card debt, a debt management plan can help make your credit card debt, affordable.  You should draw up an income/expenditure list so that your repayments can be made to fit around all your other everyday costs.  Your lenders will only accept a debt management plan if you can show them that your existing debt repayments are unaffordable, but that you can still repay the debt in full.

In conclusion you have a lot to think about when entering a debt management plan.  Its informal, meaning that your lenders can choose to cancel it at any time.  It will affect your credit rating, meaning it will be close to impossible to get any type if credit in the UK for years to come.  It can also be a means of sorting out your debt without going down the IVA or bankruptcy route