Record high for CAB debt enquiries

by Gill Montia

Story link: Record high for CAB debt enquiries

The Citizens Advice Bureaux (CAB) has published figures showing that debt enquiries in England and Wales have reached a record high.

In the last year, the CAB recorded a 20% increase in such enquiries bringing the total number to 1.7 million, double the level of ten years ago.

For the CAB this means that consumers’ concerns over debt are prompting one in three enquiries, with credit card debt and problems with unsecured loans accounting for 40% of the organisation’s debt caseload.

Over the 12 month period, enquiries concerned with consumer credit increased by 14%; problems with overdrafts and unsecured personal loans by over 18%, and enquiries about bankruptcy rose by 50%.

Many of those approaching the CAB with debt problems are struggling to meet day-to-day living expenses.

In the past year, problems associated with gas and electricity bills have increased by one-third; council tax debt enquiries have risen 25% and telephone debt problems have risen by 19%.

At the same time problems presented by those with mortgage arrears and payments on secured loans increased 11%.

According to David Harker, chief executive of the CAB, “the figures are worrying evidence that while many have enjoyed the benefits of the credit boom, a growing number continue to pay the price”.