Debt enquiries in UK

The number of debt enquiries to national charity Citizens Advice Bureau (CAB) in England and Wales hit record highs in the financial year 2006/07 with the rising cost of living being partly to blame, the organisation said. In the year to March 2007, 1.7m debt enquiries were received at the CAB an increase of 20 per cent on the number recorded in the same period the previous year and double the number of enquiries recorded ten years ago.

“These figures are worrying evidence that while many have enjoyed the benefits of the credit boom, a large and growing number of people continue to pay the price becoming overwhelmed by serious debt that can have a devastating impact on their lives. Even more worrying are the signs that people are struggling not only to repay credit but also to afford day-to-day essentials,” Citizens Advice chief executive David Harker said.

Credit card debt and problems with unsecured loans were amongst the highest of reported problems to the CAB accounting for 40 per cent of its workload. One in four of all debt enquiries concerned credit and store cards. Consumer credit card debt problems increased by 14 per cent in the named period while problems with overdrafts and unsecured personal loans increased by more than 18 per cent. Bankruptcy enquiries jumped by 50 per cent.

Full text