Mortgage News
“Debt noose” tightening around UK households – CCCS
A “debt noose” is tightening around households, with families paying around £200 a month in interest payments on loans, a debt charity has warned.
Research by the Consumer Credit Counselling Service (CCCS) found that nearly a quarter of households’ disposable income went towards interest payments on loans at the end of last year.
Whileinterest payments falling by £2 per week in Q4 2011 compared to Q3, inflation pushed up the cost of living and further eroded households’ levels of disposable income, the CCCS said.
It added that, despite slowing inflation at the beginning of this year, the outlook remains grim.
“The demand for debt advice is forecast to remain high and rise in the coming years as unemployment worsens across the UK,” it said.
“Middle-aged and elderly people in particular will be increasingly affected by debt problems,” the charity said.
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CCCS has predicted that its share of clients over the age of 45 will rise from 28% in January 2005 to a projected 47.6% by December 2014, highlighting a rising demand for debt advice from late-stage professionals aged between 45 and 59.
The CCCS said the areas with the highest demand for counselling are London and the North West.