The financial outsourcing company HML has predicted that 33,257 homes will be repossessed during 2011. Although lower than both last year's actual figure of 36,300 repossessions and the prediction for this year by the Council of Mortgage Lenders of 40,000 , HML say that 2012 will be worse with between 35,000 and 40,000 homes being repossessed.

According to the Independent HML analysed the data of 320,000 mortgages to arrive at these figures saying that the second half of 2011 will be worse than the first half as redundancies and the effects of rising tax and inflation kick in.

The number that HML have arrived at is equivalent to 0.3% of all homes with a mortgage.

It also seems that more people may be seeking advice about their debt.

The Consumer Credit Counselling Service (CCCS) has experienced a leap in the number of people accessing its on-line debt counselling tool 'Debt Remedy' (

8,591 people used this service in January 2011, which is twice December's number as well as higher that at any time in 2010.

Having last year dealt with 65,825 people on-line via Debt Remedy, the CCCS are also predicting a rise in people looking for debt advice this year and say that any loss of public funding for free debt advice due to government cut backs will leave many people vulnerable to paying for advice when they may not need to.

Just recently on 4th February the CCCS also warned that insolvencies were likely to rise.

Delroy Corinaldi, the CCCS External Affairs Director says "The picture is bleak,particularly in view of the pressures on advice services. Fee-charging debt management companies must not be allowed to plug the gap left by the reduction in public funding for debt advice. It would compound the situation if overindebted households believed they had no alternative but to pay for debt advice. The recent Office of Fair Trading (OFT) report shows that the fee-charging debt management sector is not fit for purpose. It is vital that the OFT steps up its vigilance of the marketing practices of the fee-charging sector to ensure they do not trap people into using their services in the belief that there is no alternative."

The CCCS is free at the point of need for the customer who wants help with debt. The CCCS is 'self funding', the ' … lenders share with the charity the benefit they receive from its operation, making a donation from the money repaid to them through debt management plans'.

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