Household budget is a growing burden

Monday, 27 February 2012 09:19

Households in the UK are forecast to experience increased debt as interest repayments grow.

This is the reading made by the Consumer Credit Counselling Service (CCCS).

The service recorded that the average household was paying about one quarter of available income to interest last year which equals about £200 per month.

This rose by 0.1 per cent from the third quarter, matched with the rising price of essential items it outweighed any wage increases.

 "While debt levels continue to decline, interest payments are a growing burden on too many UK households,” CCCS chairman Lord Stevenson said.

The research indicated Wales as an area where the need for debt help was on the rise.

Yorkshire and the Humber have experienced a double-digit rise in the demand for advice.

London and the North West are still the top locations where debt help is in the most demand.

CCCS also forecast a rise in debt problems for middle aged and elderly people which already make up 28 per cent of its client base.

Interest payments have seen a steady rise thanks to the price influx of essentials such as petrol, utility bills and housing.

Some families are taking out further loans to deal with the growing weekly budget.

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