Debt problems hit record levels, CA says
29 October 2007
More and more Britons are turning to the Citizens Advice (CA) for help with their debt problems, a study has revealed.
According to the charity, debt enquiries to CA offices in England and Wales soared to 1.7 million in 206/2007, up 20 per cent on the previous year's figures.
What's more, credit card debt and problems with unsecured loans accounted for 40 per cent of enquiries, CA explained.
One in four of all debt enquiries concerned credit and store cards, while problems with overdrafts and unsecured personal loans increased by more than 18 per cent.
Citizens Advice chief executive David Harker said: "We still see widespread evidence of people being lent much more money than they can afford to pay back, with many companies actively marketing expensive credit and loans to people who are 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.
"We also want to see creditors being more willing to negotiate with people in debt, and to work with us in helping people manage their debt problems effectively.
"People also need help to build their understanding, skills and confidence in dealing with money matters and particularly in using credit sensibly," he added.
Mortgage repayments, council tax and rising utility bills have put more pressure on households' incomes, CA explained.
