A spokesman for the Consumer Credit Counselling Service (CCCS) said that while in the past, renters struggled most with debts, this is expected to change.
“When the base rate eventually starts to rise we expect to see a significant increase in the number of homeowners falling behind with their mortgages.”
He added that households struggling to cope with unsecured debts often had to move money around in their budgets to stay afloat. “The danger is that mortgage payments can be neglected.”
Around 45% of those contacting the service own their own home and last year the charity gave more than 85,000 homeowners a debt counselling session. In many cases, those struggling with debt first approach their mortgage lender and then are referred to CCCS, said the charity.
As well as offering advice, the charity service aims to minimise stress by dealing with creditors on the client’s behalf.
Delroy Corinaldi, the director of external affairs, stated: “Around 370,000 people contacted us for help last year – a figure we expect to grow as an increasing number of financially vulnerable households fall into difficulty.”
In order to deal with rising demand, the charity has now extended opening hours to the weekend and added a free mobile service.
