More people seek advice over debt
The number of people seeking advice for debt problems and mortgage arrears has risen sharply, leading charities said.
Figures from the Consumer Credit Counselling Service (CCCS) revealed that in the first quarter of this year, 86,990 calls were made to its helpline - up 33% on the same period last year.
Although boosted by increased capacity at the service, evidence on the ground supports the view that more people are struggling to keep afloat with their finances, the CCCS said.
Citizens Advice also reported a recent surge of people coming to their network of bureaux with concerns over mortgage arrears and repossession orders.
Reports by counsellors indicated an increase in people failing to keep up with monthly repayments, raising concern that a growing number of households are falling behind in the face of higher rates.
CCCS statistics revealed a quarterly hike of 17.9% in the number of people seeking help between January and March.
Although the post-Christmas period usually results in a rise in the number of people needing help, increased household bills and mortgage repayments have worsened the situation.
James Ketchell, head of research at CCCS, said: "Increased media attention on debt issues and increased advertising by IVA and commercial debt management firms has prompted many to take action on their debt situation earlier.
"Additionally, higher mortgage repayments and utility bills has led to more people reassessing their financial situation and seeking help where necessary.
"At CCCS we have increased capacity to ensure that all those seeking impartial and free debt advice are able to receive it. For those in debt or who have worries about their financial situation, it is important to receive advice sooner rather than later."
Source: Channel4 News.com
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