According to insolvency trade body R3, 23% of borrowers are worried about their monthly mortgage repayments compared to 19% in the previous quarter.
In addition, more than a quarter of respondents said that they were concerned with how far they were into their overdraft and 47% cited credit card debt as their major worry.
Stephen Law, president of R3, said: “The jump in the number of people worrying about their mortgage repayments may be due to the fact that, typically, the value of a mortgage repayment tends to be higher than the monthly repayment on a credit card. The higher value of this debt may make a mortgage repayment seem more difficult to pay each month.”
He added: “Many may be concerned that their repayments will increase when interest rates start to rise. People who feel that they are struggling with their personal debt should seek professional advice on managing their household budget as soon as possible.”
The survey also found that 30% of respondents believe their financial situation will worsen over the next six months, an increase of 7% on the last quarter, whereas 22% believe there situation will improve, a drop of 13% on Q3.
Law said: “Since we last carried out the survey, the government has issued the Comprehensive Spending Review that announced job cuts and welfare cuts, so it is unsurprising that fewer people are feeling optimistic about their financial outlook.
“In many cases of personal insolvency, the contributory factor is a sudden change in circumstance, such as losing a source of income, which makes repaying outstanding debts difficult. With personal debt hitting record highs and job cuts looming, many people will be feeling vulnerable.”
