It is reported that families in the UK are spending almost a quarter of their disposable income on interest payments alone. The debt charity “Consumer Credit Counselling Service” (CCCS) reported today that the interest burden on families had reached an average of almost £200 a month during the last 3 months of 2011.
The report shows that older people are becoming increasingly affected by debt problems with the CCCS having seen a rise in demand for counselling by people aged between 45 and 59. The report predicts that the demand for debt advice will peak in 2014 reflecting the “lasting distress caused by the financial crisis”.
UK households’ determination to pay down their debts has slowed down as disposable income has been swallowed up by high inflation, with expensive petrol, utilities and housing costs and deteriorating employment conditions, the charity said.
CCCS chairman Lord Stevenson said: “While debt levels continue to decline, interest payments are a growing burden on too many UK households.”