Arrears advice requests 'on the up'

10/10/2008

The number of people seeking out Citizens Advice for help with their mortgage arrears has risen by 50 per cent over the past 12 months.

A new report, released by the charity today, also found a ten per cent rise in fuel bills advice requests.

The ongoing credit crunch - which has seen a severe constriction in the mortgage market and put pressure on people's budgets - was blamed for the increase.

Citizens Advice did have some good news, however - the number of people who contacted it seeking advice for unsecured debts such as personal loans was found to have dropped slightly.

David Harker, chief executive of Citizens Advice, said: "While we are pleased to see the number of consumer credit problems going down, the increase in the number of enquiries about basic essentials is worrying and these figures show how the current economic situation is hitting vulnerable and low-income households the hardest.

"To prevent this situation worsening, it is vital that mortgage lenders and fuel companies do everything in their power to help people in arrears to come to a workable solution over repayment arrangements, rather than piling on extra charges."

Tags; Housing Debt and Bills, Young Family Finances, Credit Card Lifestyle,

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