The amount of consumers with CCJs registered against them for unpaid debts rocketed last year in yet another concerning indication of the UK's over-indebtedness.

A total of, 843,853 people had CCJs registered against them, up by a third compared to last year and the second consecutive year that the figure has increased.

According to the Registry Trust, the organisation that tracks the figures on behalf of the Lord Chancellor's office, lenders are bringing cases to court much earlier than before to ensure they have a claim on the borrower's property.

A County Court Judgment is the first step in a legal process that can result in bailiffs knocking on your door, taking possession of goods to the value of the debt. Also, it is the first step for a lender to obtain a charging order, which converts an unsecured debt into a secured debt, enabling it to make a claim against the value of the borrower's property.

CCJs are of course best avoided completely whenever possible, and for homeowners who have a number of debts which are proving difficult to stay on top of and are in danger of getting CCJs as a result, an oft used and valuable tool is to consolidate a number of smaller, unsecured loans by applying for a debt consolidation loan using their home equity to secure a lower interest rate, which can serve to lower the monthly cost of repaying their debts, especially if combined with a longer repayment period.

A County Court Judgment stays on a person's credit record for six years unless they pay it off in full within one month of its issue. The CCJ will remain on file, even if the debt is paid within the six years, but will be marked as 'satisfied'.

Even for debtors who already have CCJs, there are still solutions available to get their finances back on track. There are a number of lenders who specialise in offering debt consolidation loans to debtors with adverse credit, and who will lend to debtors with not only CCJs, but also mortgage arrears and even to debtors in an IVA or bankruptcy.

Many lenders have seen bad debt levels soar in recent years as increasing numbers of borrowes become aware of the less stringent bankruptcy laws and Individual Voluntary Arrangements. The latest set of financial figures from the banks show that Barclays, Royal Bank of Scotland (owners of NatWest), HSBC and Lloyds TSB wrote off a collective £11.6bn in customer bad debts last year.

Registry Trust chairman Malcolm Hurlston said: ‘Judgments are an important item in creditors' armoury, particularly for dealing with people who are 'won't pays' rather than 'can't pays' and the sharp rise indicates that it is creditor behaviour that is changing.’

He further added: ‘Creditors are seeking judgments as the necessary first step to obtaining charging orders against debtors' properties, thus securing their share in any equity. It is a further warning to homeowners who may have borrowed too heavily on top of rising interest rates and escalating house prices.’