Cost of living raises debt burden for households
THE RISING cost of everyday living has tightened the “debt noose” around the necks of millions of Britons, a debt counselling charity will announce today.
Nearly a quarter of households’ disposable income (23.8 per cent) goes towards interest payments on loans, on average, the Consumer Credit Counselling Service (CCCS) found at the end of last year.
Interest payments actually fell by £2 per week in the final quarter, compared to quarter three, yet inflation pushed up the cost of living and further eroded households’ levels of disposable income.
And despite slowing inflation at the beginning of this year, the outlook remains grim, the CCCS warns. “The demand for debt advice is forecast to remain high and rise in the coming years as unemployment worsens across the UK,” it said.
“Middle-aged and elderly people in particular will be increasingly affected by debt problems,” the charity said. “The report predicts that CCCS’s share of clients over the age of 45 will rise from an historic 28 per cent in January 2005 to a projected 47.6 per cent by December 2014.”