According to the Bank of England, around 10% of homeowners fell into negative equity in the first 3 months of this year.

Negative equity occurs when the value of a loan or mortgage on a property is greater than the value of the property itself.

As house prices fall the risk of negative equity grows.

Once homeowners fall into the problem of negative equity it makes it harder for them to sell and move.

It also means they cannot borrow against their property to undertake home improvements or pay off other debts.

That said, the secured loans market is not particularly accessible for many people now that lenders have tightened their lending criteria.

On a slightly more positive note, with low interest rates and unemployment levels below the peaks reached in the 1990s, mortgage arrears and house repossessions remain well below their peaks.

That said, debt is an increasing problem for many people as a result of this recession.

Unfortunately debt problems don’t usually go away by themselves so the sooner an issue is recognised and action taken the better.

Letting debts grow uncontrollably can lead to serious consequences.

If you feel you have debt problems, you can talk to organisations like the Citizens Advice Bureau or there are specialist debt management companies who can give you debt advice.