Credit crunch 'means more people are struggling with debt'
Published On 18 May 2008
The Citizens Advice Bureau (CAB) has revealed that the credit crunch has pushed more people into serious debt problems.A spokesperson for the charity explained that rising costs of everyday items, like food and utilities, meant that more people were finding their income did not cover their expenditure and that they were sliding into debt.
The spokesperson also suggested that the credit crunch had led to an increase in the number of people who were unable to keep up with their mortgage repayments.
"Mortgage arrears problems brought to [the] Citizens Advice Bureau shot up by 35 per cent in the first two months of 2008 compared with the same period last year and we have seen sharp increases in problems relating to basic essentials such as gas and electricity, water, telephone and council tax debts," the spokesperson added.
"The combination of big increases in household bills, especially fuel, and rising housing costs is putting additional pressure on people's finances when in many cases they are already stretched to the limit."
Earlier this month, the Ministry of Justice published figures which showed that mortgage possession claims were 16 per cent higher in the first three months of this year than in the first quarter of 2007, suggesting that the credit crunch has dented consumers' ability to keep up with repayments.
