Those who are at risk of repossession could end up homeless, as mortgage lenders try to recover the debt through repossession of their property and selling additional assets.

If you cannot afford to pay your utility bills then the service will be cut off, and if you cannot afford to pay your unsecured debt then you may end up with bailiffs at your home or with a CCJ. Credit Action said that in other countries, those who have mortgage arrears and are unable to pay thier secured debt may face prison. However, in the UK it is much more likely that you would end up homeless.

Chris Tapp, the charity’s director, says: “If you’re talking about mortgages and any sort of secured debt, the lender can force you to sell the property or they might repossess the property, so people could actually end up homeless.”