UK lenders will repossess property or force people to sell their homes instead of opting for forced imprisonment in the case of unpaid debt, according to Credit Action.

The money education charity further explained that both secured debt and mortgages lenders will have the choice of reclaiming property in a bid to ‘recoup their money" through action on property as opposed to attempting to have people imprisoned.

Spokesperson Chris Tapp said forced imprisonment could backfire as many people are likely to end up homeless. Additionally, those unable to repay their unsecured debt could face county court judgements and bailiffs.

Mr Tapp added that action depends on the nature of the debt, noting that with the exception of water, which cannot be denied, people may have their utilities switched off if they cannot pay.

Total personal debt in the UK was £1,443 billion at the end of May.

Figures show that secured lending on homes at the end of May hit an 8.2% rise in the last 12 months after totalling £1,210 billion.

At the same time, consumer credit has registered a 7% increase in the last 12 month to £233, however, finance website Moneyfacts.co.uk has released new statistics showing that 14 lenders increased their loan rates in the last month.

Accordingly, the AA and Tesco Personal Finance reportedly increased their rates twice while Abbey has increased rates by 5% to reach 12.9% on loans under £4,950.