An increasing number of households are currently trying to cope with rising debt problems, as rising bills, high mortgage repayments, and restricted access to credit all take their toll on our finances. As a result of this an increasing number of people are now seeking advice with relation to their debts, and the Citizen’s Advice Bureau has reported a significant rise in the number of people that have been contacting the agency with regards to financial problems and debt worries.

Debt related issues have become the single most common issue dealt with by the CAB according to a recent report, reflecting the rising level of debt that consumers in the UK are having to try and deal with. With lenders less willing to offer finance to many consumers, and credit card companies rejecting a higher level of applications due to the credit crunch, many are even finding it impossible to look at solutions such as a consolidation loan or a 0% balance transfer card in order to try and reduce their monthly outgoings, and this is simply adding to the pressure and the problem.

There are many things that have had a negative impact on household finances over recent months, and many homeowners are still struggling with the effects of five interest rate rises between August 2006 and July 2007, even though rates have come down twice since December 2007. Energy bills have rocketed since the beginning of this year, making it difficult for many people to keep up with their bills as well as their mortgages. On top of this, food prices have been steadily rising, and the cost of petrol is still sky high, so all in all consumers have their work cut out when it comes to balancing their income and outgoings.

In January and February of this year the CAB reported a 35% rise in the level of debt related enquiries, and these figures were put together following a survey of three hundred CAB offices. Officials from the Cab state that the rise comes from a combination of high mortgage repayments and higher living costs, adding that the rise in debt related enquiries was a worrying trend.

One official from the CAB said: “It is a worrying trend that our bureaux are reporting very sharp increase in the number of mortgage arrears problems they are dealing with. The combination of big increases in household bills, especially fuel, and rising housing costs is putting additional pressure on people’s finances when they are already stretched to the limit.”

An increasing number of consumers may find themselves running into financial problems following a rise in living costs, and even though the base rate has fallen twice since December, many other costs have risen and could make up for these cuts. Anyone that is experiencing problems such as this is encouraged find debt help and to contact officials such as the CAB in order to seek advice and assistance before the matter gets old out control.

Recent additions:

•  Lord Hunt recommends changes to FOS
• Do your finances need to be restructured?
• Many could face rising mortgage costs this year
• Could house prices go through the floor?

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