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"Debt laden consumers crying out for help"

By admin | February 24th, 2008 | General

Recent figures have suggested that the recent spate of interest rate rises may really have started to take their toll, as an increasing number of consumers in the UK turn to debt counselling services and charities for help and advice with their finances. Experts have been stating for some time that the financial knock on effect of the five interest rate rises over the past year was imminent, and with increasing numbers of people missing credit card payments and seeking debt assistance it seems as though the effects are now being realized.

Figures released by the Consumer Credit Counselling Service in the UK indicate that over 160,000 people called the charity in relation to debt problems in the first half of this year. Of those, the majority called in the first quarter of the year, which the charity stated was to be expected following the big Christmas spend, but a whopping 75,000 called in the second quarter of the year. The number of calls was up by nearly 20% compared the same period last year.

According to one official from the Consumer Credit Counselling Service the figures come as no big surprise considering the current economic climate.

He stated: ‘The latest figures show that people are worried about their situation. We are seeing increased pressure on individuals, with interest rate rises and an increase in essential living costs. Debt has also become a big issue and people are coming to us early for help – which is a good thing.’

Many consumers are expected to find themselves struggling to keep up with financial obligations, including mortgage repayments, as a result of the rate rises, and experts are concerned that many could end up losing their homes as a result of defaulting on repayments that they can no longer keep up with.

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