The number of individuals seeking help with debt problems rose to a record high last year.
One charity alone reported a 20% rise in calls for advice, resulting in 6,600 problems each day. Individuals considering Bankruptcy rose by 50%. This can largely be blamed on the five interest rate rises in the past year.
This increase in interest rates has added more than £100 per month to repayments on a £125,000 mortgage. This is leading to borrowers having trouble meeting repayments on credit cards and loans.
Even more worrying is the rise in the number of families struggling to pay essential bills, i.e. heating and lighting. The number of individuals seeking help when they are behind on these essential payments increased by around 50%. Those struggling with council tax repayments rose by a quarter and those struggling with phone bills rose by 19%.
These figures show that may of those who have enjoyed the benefits of the credit boom, are now paying the price!
3 Jan 2008