Debt problem growth “alarming”

Moira Haynes from the debt advice charity said that CAB saw 1.4 million more enquiries last year and warned that people often have their finances in a poor state in January.

“We are seeing more debt problems than ever before,” she said. “The rate of growth of debt problems is alarming.

“The new year is when our debt advisers are at their busiest. It is an all-year-round problem but it is certainly at its peak in the new year when people come face-to-face with the reality of having spent more than they could afford, or used credit and then found that they are going to struggle to pay that back in the new year particularly when the bills come in January and February.”

She added that “big winter bills” also play havoc with debt management plans, adding that she expects it to be worse this year following large fuel hikes.

Ms Haynes’ warning comes as other debt advice experts warn of the financial dangers people face in January.