Money homeWorried Homeowners Seeking Debt Advice
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(18-03-08) - The Citizens Advice Bureaux has reported a 35% increase in mortgage debt enquiries in the period between January 2007 and February 2008. writes Dan Drage dan.drage@consumerchoices.co.uk |
In a survey of more than 300 offices, mortgage debt enquiries are nearing an all-time high, as are queries surrounding mounting home utility debts. Questions surrounding credit card difficulties are down by 9% however.
Almost a third of all enquiries fielded by the Citizens Advice Bureaux concern debt, making it the single largest subject they have to deal with. Teresa Perchard, the Citizens Advice director of policy, has noticed a distinct climate change over the last six months:
‘It is a worrying trend that our bureaux are reporting a very sharp increase in the number of mortgage arrears problems they are dealing with. 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.’
Despite horror stories of people spending 25 to 30% of their income on utility bills alone, a curb in pre-Christmas credit card use prompted a decrease in credit card debt related enquiries. The fall in credit card debt has been backed up by credit check agency Experian. An explosion in credit card use was prevented by cautious lending on the behalf of credit card companies.
Overdraft issues, perhaps as a result of the ongoing 'unfair fees’ court case between the OFT and major high street banks, took a 7% leap.
Chris Eagle, Commercial Manager at CreditChoices, offers the following advice:
‘Inform your creditors early if you think you might struggle to make a payment. They may be able to devise a payment plan for you in order to make payment a little easier. The Citizens Advice Bureaux are also there to help, so contact them before your debts spiral out of control.’
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