Indebted urged to seek advice

Mr Coles suggests that in light of another rise in the cost of borrowing introduced recently, there are likely to be more people in need of debt advice and that building society employees are on hand to offer a “sympathetic response” to these kinds of problems.

He added that with a further increase in the base rate of interest to 5.75 per cent still a realistic prospect over the coming months it is important that credit consumers implement an effective debt management plan.

Mr Coles said: “For people on variable rate mortgages, the increase in the interest rate will see their mortgage payments rise.

“For some, especially people who have also taken out personal loans or credit cards, this could mean a problem paying the mortgage.”

In March of this year, the Consumer Credit Counselling Service made clear its expectation that homeowners across the UK will be “on the rack” financially throughout 2007.