Can credit card debt put your home at risk?
MoneyNerd introduces enquiries to The Debt Advice Service and may receive a referral fee. For free, independent guidance and help finding a debt adviser, visit MoneyHelper.
This information and enquiry service is not a full financial assessment or a guarantee of suitability or debt write-off. Debt solutions are not suitable for everyone. Fees may apply, and your credit record and assets may be affected. Get advice on your circumstances before choosing a solution.
MoneyNerd introduces enquiries to The Debt Advice Service and may receive a referral fee. For free, independent guidance and help finding a debt adviser, visit MoneyHelper.
This information and enquiry service is not a full financial assessment or a guarantee of suitability or debt write-off. Debt solutions are not suitable for everyone. Fees may apply, and your credit record and assets may be affected. Get advice on your circumstances before choosing a solution.
Understand charging orders, orders for sale and the steps to take if a credit card creditor starts court action.
Can My Home be Taken Away from Me?
Credit card borrowing is normally unsecured at the start, so a creditor cannot simply repossess your home because you miss a payment. However, court enforcement or insolvency can put property at risk. It is misleading to say the home is completely protected.
In England and Wales, a creditor can seek a judgment and then a charging order against your interest in property. Other UK jurisdictions use different procedures. Get advice promptly if you receive a claim or charging-order application.
How the introduction works
The Debt Advice Service can discuss your circumstances and explain available options, including their benefits, costs and risks.
Options depend on your circumstances. You decide whether to proceed.
Advertisement. MoneyNerd introduces enquiries; we do not give debt advice or recommend solutions. The Debt Advice Service, a trading style of Pacific Financial Solutions Limited, offers free debt advice with no obligation. Complete the enquiry form to share your details and request a call.
Some debt solutions have fees and may negatively affect your credit rating. MoneyNerd may receive a fee if you go ahead with a debt solution through The Debt Advice Service. For free, impartial guidance and help finding free debt advice, visit MoneyHelper.
So, My Property is Completely Safe?
No automatic protection applies. A charging order secures the judgment debt against the relevant property interest. For relevant judgments made on or after 1 October 2012, a creditor can apply even if instalments are up to date. An order for sale is a separate court step.
A charge does not automatically give the creditor every penny of sale proceeds. Earlier mortgages, costs, the amount secured and other owners’ interests can matter. See the official guidance for responding to a charging order.
A debt collector has no general power to seize goods. A bailiff needs lawful enforcement authority, and the rules on entry and exempt goods depend on the circumstances. Obtain advice rather than relying on an absolute statement that forced entry can never occur.
Debt advice: Continue to the debt enquiry form
Advertisement. MoneyNerd is a commercial introducer, not a debt adviser. The Debt Advice Service, a trading style of Pacific Financial Solutions Limited, offers free debt advice with no obligation. If you request an introduction, your details are shared with them so they can contact you.
Some debt solutions have fees and may negatively affect your credit rating. MoneyNerd may receive a fee if you proceed with a debt solution through The Debt Advice Service. MoneyHelper offers free, impartial money guidance and help finding free debt advice.
What is an Order for Sale?
This is a separate court order permitting a sale to enforce a charge. The court considers the application and applicable safeguards; a charging order does not make a sale automatic. Protections can apply when instalments under a relevant judgment are up to date.
For charging orders securing Consumer Credit Act regulated debts, a £1,000 threshold applies to this route. It is not a universal threshold for every debt or enforcement method. Get legal advice about any application and respond within the stated deadline.
Can I Get A Debt Solution?
Free debt advice can help you compare an affordable repayment arrangement with formal solutions. A DMP is informal and does not guarantee protection from court action. An IVA, bankruptcy or a Scottish protected trust deed can affect property, credit records and future borrowing, and fees may apply.
A homeowner will not qualify for an England-and-Wales Debt Relief Order. Do not choose an insolvency option on a promise that it will protect your home; have an adviser assess the ownership, equity, debts and applicable jurisdiction. See the official debt-options guide.
About The Debt Advice Service
Use the enquiry form to request a call about your circumstances and available options. You decide whether to proceed.
Advertisement. MoneyNerd introduces enquiries; we do not give debt advice or recommend solutions. The Debt Advice Service, a trading style of Pacific Financial Solutions Limited, offers free debt advice with no obligation. Complete the enquiry form to share your details and request a call.
Some debt solutions have fees and may negatively affect your credit rating. MoneyNerd may receive a fee if you go ahead with a debt solution through The Debt Advice Service. For free, impartial guidance and help finding free debt advice, visit MoneyHelper.
What is the Breathing Space Scheme?
In England and Wales, eligible debts may receive temporary protection from most interest, charges and enforcement through a Breathing Space arranged by a debt adviser. Standard protection normally lasts 60 days; a mental-health-crisis breathing space follows different eligibility and duration rules.
It is not a payment holiday and does not cover every debt or stop every type of action. Ongoing liabilities still matter. Scotland has separate moratorium rules; ask an adviser which protection, if any, applies.
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