Figures from the Citizens Advice Bureau has shown that the number of people seeking advice about their debts is rising. They have stated that 1.7 million people contacted them about debt advice which was up 20% on last year.
Many of these people were struggling with unsecured debts like credit cards and catalogue bills. Many had even expressed the difficulties they experienced with their telephone bills. Much of this has been amplified by the fact interest rates have risen 5 times in the last year. This coupled with the fact that many found it very easy to obtain credit in the first place with few checks for this sort of credit has left many people struggling with their finances.
The CAB said that the number of people enquiring about going bankrupt went up 50%, while enquiries about overdrafts and mortgage problems rose 14% and 11% respectively. People are even struggling to pay basic costs like their fuel bills, up 33%, and council tax, up 25%. This could be explained by the fact that energy costs have also risen. The CAB have claimed that lenders need to act more sensibly when giving people credit and that if they do give credit away easily should then be more willing to negotiate with these people when they get into difficulties.
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