CAB reports increased level of debt related enquiries

The Citizen’s Advice Bureau has reported that there has been a rise in the number of debt related enquiries over the first two months of this year compared to the first two months of the previous year.

A survey was carried out across three hundred CAB offices, and showed that debt related enquiries had rocketed by 35% over January and February.

An official from the CAB commented on the rise in debt enquiries, stating: “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.”

Although the level of general debt related enquiries had gone up, the level of credit card problems had actually fallen by 10% compared to the same period last year.

Many households have suffered financially over recent months due to rising living costs such as petrol, food, and bills, as well as high mortgage repayments.

Debt related enquiries are now the single most common issue dealt with by the CAB, and with the credit conditions getting tighter as a result of the credit crunch, and many homeowners due to come off cheap fixed rate mortgages, the situation could get worse over the coming months.