Cab received increased debt related enquiries

 

April 8, 2008

As more and more people struggle to cope with their finances in light of the current financial woes facing many households, there as been a significant increase in the number of people that have been contacting the Citizen’s Advice Bureau for advice about debt, according to a recent report. The information comes following a survey on three hundred CAB branches across the UK, and employees from the bureau have stated that the high level of enquiries has resulted in debt related problems becoming the single most common problem dealt with by the CAB.

There was a 35% increase in the level of debt related enquiries in January and February of this year compared to the same period the year before, reflecting the effect that the global credit crunch and rising living costs have had on consumers. Household finances have been strained since interest rates started rising in 2006, and even with two interest rate cuts in the past three months other rising costs have resulted in household finances remaining strained.

An official from the CAB said: “It is a worrying trend that our bureaux are reporting very sharp increase in the number of mortgage arrears problems they are dealing with.”

She went on to state: “The combination of big increases in household bills, especially fuel, and rising housing costs is putting additional pressure on people’s finances when they are already stretched to the limit.”

Whilst the level of overall debt related problems has risen by a massive 35% compared to last year, officials report that the level of credit card related problems have actually fallen by 10%. However, it is thought that the overall level of debt problems has risen due to households trying to cope with higher mortgage costs as well as increased bill payments, food costs, and petrol prices.

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