Despite reduced levels of debt and low interest rates, UK households are finding that servicing their debts is an increasing burden, according to independent research from the debt charity, Consumer Credit Counselling Service.
At the end of last year, the average household was paying almost £200 per month in interest payments, representing nearly a quarter (23.8%) of available income as the rising prices of essential items outweighed wage increases and thus reduced discretionary income.

Some other findings in the CCCS Report are that the demand for debt advice is forecast to remain high and will rise in the coming years as unemployment worsens across the UK. Demand for debt advice is expected to hit another peak in 2014, indicating the lasting distress caused in the aftermath of the financial crisis.

Middle-aged and elderly people in particular will be increasingly affected by debt problems and predicts that those seeking help over the age of 45 will rise from an historic 28% in January 2005 to a projected 47.6% by December 2014.

The fastest increasing areas of debt help need are Wales and the most highly urbanised areas of the UK such as Yorkshire and the Humber, which have seen double-digit increases in demand for debt advice. Yet the areas with the highest actual demand for counselling are London and the North West.