Households are being increasingly financially squeezed as it emerged that families are having to pay nearly £200 in interest each month.
After paying out money each month on their regular bills, the Consumer Credit Counselling Service (CCCS) believes that the average UK household still spends 24 per cent of their discretionary income on their ‘interest burden’.
The CCCS released a report stating: “Interest payments are a heavy burden on household finances.
“With payment necessary regardless of economic circumstances, they pose a major threat to the solvency of many families.
“As a major spending component that must be met on time, the need to service debt is posing a significant challenge in the current economic downturn when household heads lose their jobs and income sources dry up.”
The charity conducted its research through the Centre for Economic and Business Research, which analysed the charity’s existing database.
The results indicate that demand for debt advice looks set to peak in 2014, indicative of the lasting impact of the financial crisis.
CCCS further highlighted a rise in demand for debt advice from the more mature generation aged between 45 and 59. The report explained: “There has been a gradual rise in counselling demand from this group, with its share rising from 22.8 per cent in 2005 to 31.7 per cent by the end of 2011.”
“With incomes set to grow at a slower pace and first time buyers hard-pressed to get on the property ladder, rates of home ownership may well decrease gradually in the coming years and decades.
“With rising property prices and rising borrowing, mortgage debt has grown in importance compared with other areas of household finances. This development is evident in the growing share of mortgage debt as a proportion of total household debt. This has risen from 80.3 percent in January 2000 to 86.3 percent by the end of last year.”
Unique technology platform offers 'market-changing' solution
Wednesday 4th January 2012
2012: A difficult year ahead?
Wednesday 4th January 2012
England footballer facing bankruptcy battle
Wednesday 14th December 2011
DMT Insider - Debt management in 2012
Wednesday 14th December 2011
Are back book buy-outs the future?
Wednesday 23rd November 2011
Send To Friend Print
RSS Feed News Archive If you have any queries about this news story or our news section, please contact us
Posted in: 
0 comments:
Post a Comment