Tuesday 11th September 2007
The number of people seeking help for debt problems has soared to record levels, according to the Citizen's Advice Bureau (CAB).
CAB reports that debt problems are now the single biggest issue it handles, dealing with a record 1.7 million enquiries over the past 12 months, are 6,600 each day.
A CAB spokesman warned: "There is no let-up in the rising toll of casualties from an unprecedented consumer credit boom and recent sharp increases in the cost of living. Mortgages, council tax and utilities are all more expensive."
Five rate rises in the last year alone have put many people in debt under extra pressure, the CAB reports a 50 per cent increase in the number of bankruptcy-related enquiries, a 14 per cent increase in relation to overdrafts, and a 33 per cent rise in the number of people struggling to pay their energy bills.
The increasing number of people struggling to pay utility bills of particular concern, and with energy prices on the rise, this is a problem that could get worse.
CAB chief executive, David Harker, said: "These figures are worrying evidence that while many have enjoyed the benefits of the credit boom, a growing number continue to pay the price."
Mr Harker also urged lenders not to continue to give credit to people who were already struggling: "Lenders need to do much more to check that borrowers are really in a position to keep up repayments when they take out credit."
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Loans
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