Debt charity warns of rising problems

A debt management charity has warned that Britain is heading for a Christmas period of deep financial struggle for many.

Debt adviser for Money Advice Trust Beccy Boden Wilks commented: “We have seen a continued rise in demand for advice from people with mortgage arrears and we believe that this Christmas will be our busiest on record.”

She said that many could get into “unmanageable debt situations” in the future as developments such as public spending cuts and rising interest rates emerge.

Ms Boden Wilks confirmed that the first ten months of 2009 saw 23 per cent more calls to the Money Advice Trust helpline than in the same period last year.

Those keen to escape from their debt management issues may find cheaper financial products provide part of the answer.

At present, 64 per cent of households believe they can comfortably manage their repayments, according to a new Bank of England survey.

This means around a third of consumers are either struggling already or could be at risk of having difficulties in meeting payments.

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