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Debt problems decline for first time in two years?

Debt problems decline for first time in two years?

- Wednesday, 1 September 2010


The Citizen's Advice Bureau has announced that the number of cases relating to debt problems it dealt with from April to June declined for the first time in two years.

However, the charity also found that the number of consumers seeking advice about which debts to pay off first and which ones have the most severe consequences if they are left unpaid have increased.

Water supply debts rose by 18 per cent in the period of April to June this year compared to the same three months last year.

The money owed to private landlords as rent arrears also increased by 18 per cent, while council tax arrears and telephone debt grew by seven per cent.

Gillian Guy, chief executive at Citizen's Advice, said: "Recent budget measures will have a significant impact on vulnerable households … we expect to see a new wave of people seeking advice about job loss and related benefits and the impact this has on their ability to repay debt."

In June this year, chancellor George Osborne announced in his emergency Budget that benefits would be cut by £11 billion a year, which could affect the ability of some households to pay their bills.
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